Garrison Company acquired $23,000 by issuing common stock.Which of the following accurately reflects how this event affects the company's horizontal financial statements model?

Question

Quizplus · Accepted Answer

Issuing common stock increases assets (cash) and stockholders' equity (common stock). It does not affect the income statement, but is reported as a cash inflow for financing activities on the statement of cash flows.

Garrison Company Acquired $23,000 by Issuing Common Stock