ABC issued 1,000 shares of $10 Par value common stock and received $25,000. Because of this transaction, total equity increased by $25,000.

True

False

QUESTION 2

ABC issued 1,000 shares of $10 Par value common stock and received $25,000. Because of this transaction, total assets increased by $25,000.

True

False

QUESTION 3

The dividends account has a normal balance of DEBIT.

True

False

QUESTION 4

ABC declared a $50,000 dividend. Because of this transaction, total equity decreased by $50,000.

True

False

QUESTION 5

When a company issues stock, the only asset that can be received is cash.

True

False

QUESTION 6

Common Stock and Additional Paid in Capital accounts have a normal balance of CREDIT.

True

False

QUESTION 7

ABC issued 1,000 shares of $10 Par value common stock and received $25,000. Because of this transaction, the account additional paid in capital increased by $25,000.

True

False

QUESTION 8

ABC declared a $50,000 dividend. Because of this transaction, total liabilities increased by $50,000.

True

False

QUESTION 9

The Treasury Stock account has a normal balance of CREDIT.

True

False

QUESTION 10

ABC declared a $50,000 dividend. Because of this transaction, total assets decreased by $50,000.

True

False