On January 11, 2014, Britannica Corporation sold ordinary shares to investors for ₤6,550,000. This transaction will increase assets and

Question

Quizplus · Accepted Answer

The sale of ordinary shares represents an increase in equity, specifically in the form of contributed capital. Therefore, option D is correct. The sale of shares does not affect liabilities or revenues, so options A and C are incorrect. Option B is also incorrect because the sale of shares actually increases equity, rather than decreasing it.

On January 11, 2014, Britannica Corporation Sold Ordinary Shares to Investors