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

Name: When capital 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 capital stock for cash affects the balance sheet by increasing both cash and equity, but it does not affect the income statement as it is not a revenue or expense transaction.

When Capital Stock Is Issued by a Corporation for Cash,both