If a company issues common stock for 40000 and uses 30000 of the cash to

If a company issues common stock for 40000 and uses

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122.If a company issues common stock for $40,000 and uses $30,000 of the cash to purchasea truck, a.assets will be increased by $10,000.b.equity will be reduced by $40,000.c.assets will be increased by $40,000.d.assets will be unchanged.Ans: C, LO: 2, Bloom: C, Difficulty: Medium, Min: 2, AACSB: None, AICPA FC: Reporting, IMA: Reporting 123.Are prepaid amounts received from customers treated as revenue at the time of receipt?Why or why not? 124 . The receipt of cash in advance from a customer a. increases assets and stockholders' equity. b. increases assets and decreases stockholders' equity. c. increases assets and liabilities. d. none of these answer choices are correct. 125.On March 1, 2017, Freeze Company hires a new employee who will start to work onMarch 6. The employee will be paid on the last day of each month. Has an accounting transactionoccurred on March 6? Why or why not? FOR INSTRUCTOR USE ONLY
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3-20 Test Bank for Survey of Accounting, First Edition 126.Howard Company had a transaction that caused a $5,000 increase in both assets andtotal liabilities. This transaction could have been a(n)
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