Which of the following reflects the impact of a transaction where $200,000 cash was invested by stockholders in exchange for stock?
A)Assets and liabilities each increased $200,000.
B)Assets and revenues each increased $200,000.
C)Stockholders' equity and revenues each increased $200,000.
D)Stockholders' equity and assets each increased $200,000.

Question

Quizplus · Accepted Answer

Receiving $200,000 cash in exchange for stock increases assets (cash) and stockholders' equity (issuing stock).

Which of the Following Reflects the Impact of a Transaction