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Common stock and additional-paid in capital

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1. The accounting equation does not have to be in balance after the recording of each transaction. True False

2. Additional-paid in capital is reported on the balance sheet as a component of shareholders' equity. True False

3. Common stock and additional-paid in capital are both reported on the balance sheet as a component of shareholders' equity. True False

4. A company's assets and stockholders' equity both increase when the company sells additional shares of stock in exchange for cash. True False

5. Purchasing supplies for cash results in an increase in total assets for the purchasing company. True False

Reference no: EM13845683

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