When common stock is issued by a corporation for cash, both the income statement and the balance sheet are affected.

Name: When common stock is issued by a corporation for cash, both the income statement and the balance sheet are affected.
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Question

Quizplus · Accepted Answer

Issuing common stock for cash affects the balance sheet by increasing both cash (asset) and equity (common stock), but it does not impact the income statement as it is not a revenue or expense transaction.

When Common Stock Is Issued by a Corporation for Cash