When a Company Issues Common Stock for Cash,what Is the Effect

question 108

Multiple Choice

When a company issues common stock for cash,what is the effect on the accounting equation for the company?

• A)Assets increase and liabilities increase.
• B)Assets increase and stockholders' equity increases.
• C)Assets decrease and liabilities decrease.

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Definitions:

Encopresis

A condition characterized by the repeated passing of feces into inappropriate places by a child who is typically over the age of four.

Involuntary Defecating

Refers to the loss of bowel control, resulting in unexpected passing of feces, often related to health conditions or neurological disorders.

Enuresis

A condition characterized by involuntary urination, especially by children at night, also known as bedwetting.

Phenylketonuria (PKU)

A genetic disorder where the body is unable to break down the amino acid phenylalanine, leading to its accumulation and potential brain damage.