Chico Company experienced an accounting event that affected its financial statements as indicated below:

Which of the following accounting events could have caused these effects on the elements of Chico's financial statements?

Question

Chico Company experienced an accounting event that affected its financial statements as indicated below:

Which of the following accounting events could have caused these effects on the elements of Chico's financial statements?

Quizplus · Accepted Answer

Issuing common stock would increase assets (cash) and increase stockholders' equity (common stock). It would not affect net income, but would be reported as a cash inflow from financing activities on the statement of cash flows.

Chico Company Experienced an Accounting Event That Affected Its Financial