A business can obtain financing by issuing stock or borrowing from third parties,such as banks.What are the balance sheet effects of issuing stock to obtain cash?
A) No effect on assets;Decrease liabilities;Increase stockholders' equity
B) Increase assets;Increase liabilities;Increase stockholders' equity
C) Increase assets;No effect on liabilities;Increase stockholders' equity
D) Increase assets;Increase liabilities;No effect on stockholders' equity
Correct Answer:
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