Computer Corporation is starting its computer programming business and has sold stock of $15,000.Identify how the accounting equation will be affected.
A)increase assets Cash and increase liabilities Accounts Payable
B)increase assets Cash and increase stockholders' equity Capital Stock
C)increase assets Accounts Receivable and decrease liabilities Accounts Payable
D)increase assets Cash and increase assets Accounts Receivable

Question

Quizplus · Accepted Answer

The sale of stock for $15,000 will increase the assets (Cash) and increase the stockholders' equity (Capital Stock) in the accounting equation. Therefore, the correct option is B.

Computer Corporation Is Starting Its Computer Programming Business and Has