Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. Use only one letter for each element. You do not need to enter amounts.Increase = IDecrease = DNo Effect = NSierra Co. issued 10,000 shares of common stock for $45 per share. The stock has a par value of $10.AssetsLiabilitiesEquityRevenuesExpensesNetIncomeCash Flow? ?????

What will be an ideal response?


(I) (N) (I) (N) (N) (N) (I)
The stock issuance will increase assets (cash) and increase equity (common stock and paid-in capital in excess of par value - common stock). It is reported as a cash inflow from financing activities.

Business

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________ occurs when suppliers are pressured to purchase the buyer's products or services as a condition of securing a purchase contract

a. Cooperation b. Reciprocity c. Binding agreement d. Mutual agreement e. None of the choices.

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When the market value of a company's common stock is below the replacement value of the firm's net assets, this company is frequently referred to as a possible ____

A) white knight B) leveraged buyout C) takeover candidate D) conglomerate

Business

Round the number to the indicated place: 4,652 all the way

What will be an ideal response?

Business