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:

Distribution Pattern

Distribution pattern refers to the way biological organisms are spaced within their environment, which can be random, uniform, or clumped.

North-Facing

Refers to the direction or aspect that primarily faces towards the north; often considered in terms of sunlight exposure and ecological implications.

South-Facing

Refers to an orientation or placement of structures, such as windows or solar panels, towards the south in the Northern Hemisphere (or north in the Southern Hemisphere) to maximize sunlight exposure.

Ferns

A group of non-flowering, vascular plants that reproduce via spores and have neither seeds nor flowers.