Assets received in exchange for the issuance of stock should be recorded at: A) historical cost B) historical cost less accumulated depreciation taken to date C) fair value as determined by a good-faith estimate from independent appraisers D) book value prior to the issuance The issuance of preferred shares requires a: A) debit to Retained Earnings B) credit to Retained Earnings C) debit to Share Capital, Preferred D) credit to Share Capital, Preferred What effect does an investment of cash in a corporation have on the corporation's balance sheet? A) It increases assets and decreases liabilities. B) It increases assets and increases liabilities. C) It increases assets and increases shareholders' equity. D) It increases assets and decreases shareholders' equity. The issuance of common shares requires a: A) credit to Retained Earnings B) debit to Retained Earnings C) credit to Common Shares D) debit to Common Shares Suppose 100 common shares are issued for $12.50 per share. The entry to record this issuance includes a: A) credit to Retained Earnings for $1,250 B) credit to Common shares for $1,250 C) credit to Contributed Surplus for $250 D) debit to Preferred Shares for $1,000 When 1,000 common shares are sold at $3.75 per share, Share Capital will: A) increase $1,000 B) increase $2,750 C) increase $3,750 D) not be affected Which statement below regarding a share repurchase is true? A) A share repurchase grows a company's assets and equity. B) The company repurchasing shares is not entitled to vote. C) Repurchasing shares decreases assets and equity. D) Repurchasing shares increases retained earnings..

1. Assets received in exchange for the issuance of stock should be recorded at: A) historical cost
B) historical cost less accumulated depreciation taken to date C) fair value as determined by a
good-faith estimate from independent appraisers D) book value prior to the issuance The
issuance of preferred shares requires a: A) debit to Retained Earnings B) credit to Retained
Earnings C) debit to Share Capital, Preferred D) credit to Share Capital, Preferred What effect
does an investment of cash in a corporation have on the corporation's balance sheet? A) It
increases assets and decreases liabilities. B) It increases assets and increases liabilities. C) It
increases assets and increases shareholders' equity. D) It increases assets and decreases
shareholders' equity. The issuance of common shares requires a: A) credit to Retained Earnings
B) debit to Retained Earnings C) credit to Common Shares D) debit to Common Shares Suppose
100 common shares are issued for $12.50 per share. The entry to record this issuance includes a:
A) credit to Retained Earnings for $1,250 B) credit to Common shares for $1,250 C) credit to
Contributed Surplus for $250 D) debit to Preferred Shares for $1,000 When 1,000 common
shares are sold at $3.75 per share, Share Capital will: A) increase $1,000 B) increase $2,750 C)
increase $3,750 D) not be affected Which statement below regarding a share repurchase is true?
A) A share repurchase grows a company's assets and equity. B) The company repurchasing
shares is not entitled to vote. C) Repurchasing shares decreases assets and equity. D)
Repurchasing shares increases retained earnings.