Tandem Company acquired $23,000 by issuing common stock. Which of the following choices accurately reflects how this event affects the company's financial statements?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Tandem Company acquired $23,000 by issuing common stock. Which of the following choices accurately 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

Issuing common stock increases assets (cash) and equity (common stock). It does not affect the income statement, but is reported as a cash inflow for financing activities on the statement of cash flows.

Tandem Company Acquired $23,000 by Issuing Common Stock