The Greene Corporation recorded a business event using T-accounts as follows: Which of the following reflects how this event affects the company's financial statements?
A)Option A
B)Option B
C)Option C
D)Option D

Question

The Greene Corporation recorded a business event using T-accounts as follows:  Which of the following reflects how this event affects the company's financial statements? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

A debit to cash increases assets and a credit to common stock increases equity. The income statement is not affected, and the event is reported as a cash inflow for financing activities.

The Greene Corporation Recorded a Business Event Using T-Accounts as Follows