Multiple Choice
If a company issues 25,000 ordinary shares which are sold at $4 per share, the effect on the accounting equation is:
A) increase cash $100,000; decrease in shareholders' equity $80,000.
B) increase cash $100,000; increase in liabilities $80,000.
C) increase cash $100,000; increase in shareholders' equity $100,000.
D) none of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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