Asked by Ayanna Akbar on May 27, 2024
Verified
Which of the following reflects the impact of a transaction where $200,000 cash was invested by stockholders in exchange for stock?
A) Assets and retained earnings each increased $200,000.
B) Assets and revenues each increased $200,000.
C) Stockholders' equity and revenues each increased $200,000.
D) Stockholders' equity and assets each increased $200,000.
Stockholders' Equity
The ownership share of shareholders in a corporation, calculated as the value of assets minus liabilities.
Retained Earnings
The portion of net income that is not distributed to shareholders as dividends but is retained by the company for reinvestment.
Assets
Economic resources owned by a business or company that are expected to provide future benefits or value.
- Analyze the impact of stock issuance and investments on stockholders' equity and assets.
Verified Answer
Learning Objectives
- Analyze the impact of stock issuance and investments on stockholders' equity and assets.
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