Team Shirts sold $4,000 worth of its own stock in the stock market.The transaction would _________ cash by $4,000 and _________ shareholders' equity by $4,000.

Question

Quizplus · Accepted Answer

Selling stock increases cash because the company receives money from the sale. It also increases shareholders' equity because issuing new stock adds to the owners' claim on the company's assets.

Team Shirts Sold $4,000 Worth of Its Own Stock in the Stock