How would the issuance of common stock for cash affect the accounting equation?a. Increase assets and increase stockholders’ equityb. Increase liabilities and decrease stockholders’ equityc. Increase assets and increase liabilitiesd. Decrease assets and decrease liabilities

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
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How would the issuance of common stock for cash affect the accounting equation?
a. Increase assets and increase stockholders’ equity
b. Increase liabilities and decrease stockholders’ equity
c. Increase assets and increase liabilities
d. Decrease assets and decrease liabilities

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