If a company issues 1,000 shares of $1 par value common stock for $20 per share, what would be the effect on the accounting equation?

A) Increase assets and increase liabilities.

B) Increase assets and increase revenue.

C) Increase assets and increase stockholders' equity.

D) Increase assets and decrease stockholders' equity.

Answer: C

If a company issues 1,000 shares of $1 par value common stock for $20 per share, which of the following accounts would be credited?

A) Treasury Stock

B) Cash

C) Additional Paid-in Capital

D) Retained Earnings

Answer: C

The correct order from the smallest number of shares to the largest number of shares is:

A) Authorized, issued, and outstanding.

B) Outstanding, issued, and authorized.

C) Issued, outstanding, and authorized.

D) Issued, authorized, and outstanding.

Answer: B