Match each of the numbered transactions of a corporation with the appropriate letters, indicating the effect of the transactions (increases and decreases
-A shareholder purchased stock.
A) Increase an asset
B) Decrease an asset
C) Decrease a liability
D) Increase a liability
E) Decrease common stock
F) Increase common stock
G) Increase dividends
H) Decease dividends
I) Decrease revenue
J) Increase revenue
K) Increase expense
L) Decrease expense

Question

Quizplus · Accepted Answer

When a shareholder purchases stock, the corporation receives cash (an asset), which increases (A), and it issues common stock, which increases the equity section of the balance sheet (F).

Match Each of the Numbered Transactions of a Corporation with the Appropriate