Issuance of common stock for cash would be recorded by a ________.
A)credit to Retained Earnings
B)credit to Common Stock
C)debit to Investments
D)credit to Revenues

Question

Quizplus · Accepted Answer

Issuance of common stock for cash involves the selling of ownership shares in the company to investors. The cash received is recorded as an increase in the company's assets and the corresponding increase in equity is recorded as a credit to Common Stock. Retained Earnings, Investments, and Revenues are not affected by the issuance of common stock for cash.

Issuance of Common Stock for Cash Would Be Recorded by a ________