The purpose of a grant proposal is to secure financing from organizations that champion deserving causes.
What characteristics distinguish a strong grant application?A good grant application should be persuasive, straightforward, and brief. Be sure to provide the donor enough information so that they can understand your proposal and see that you've given it some thought, but avoid being overly verbose. Additionally, the story you include in your grant application should help the sponsor understand your initiative.
What does a grant serve as?Your ideas and initiatives to offer public services and boost the economy can be funded by the government through grants. Grants fund numerous programs included in the Catalog for Federal Domestic Assistance, including innovative research projects, crucial recovery measures, and others (CFDA).
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Fuzzy Button Clothing Company is considering a one-year project that requires an initial investment of $600,000; however, in raising this capital, Fuzzy Button will incur an additional flotation cost of 5%. At the end of the year, the project is expected to produce a cash inflow of $900,000. The rate of return that Fuzzy Button expects to earn on the project after its flotation costs are taken into account is _________.
The rate of return that Fuzzy Button expects to earn on the project after its flotation costs are taken into account is 42.86%.
What is the rate of return?The rate of return is the net gain or loss (which is the total cash inflow minus the total cash outflow) of an investment over a stated period.
The rate of return is expressed as a percentage of the investment's initial cost.
To compute the rate of return, divide the net gain or loss by the initial investment and multiply the quotient by 100.
Initial investment = $600,000
Flotation cost = $30,000 ($600,000 x 5%)
Total costs = $630,000 ($600,000 + $30,000)
Estimated cash inflow = $900,000
Returns (net gain) = $270,000 ($900,000 - $630,000)
Rate of return = 42.86% ($270,000/$630,000 x 100)
Thus, Fuzzy Button's rate of return for this one-year investment is 42.86%.
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a gas station operates in a monopolistically competitive market and is in short run equilibrium. suppose that a fixed cost for this firm decreases. as a result, the firm's price will ______, the firm's output will ______, and the firm's economic profit will ______.
stay the same
stay the same
increase
The firm's price will stay the same, the firm's output will stay the same, and the firm's economic profit will increase.
What are the parameters of a monopolistically competitive firm's short-run equilibrium?A monopolistically competitive firm's short-term equilibrium is the same as a monopoly firm's. The company produces a good or service at a price where marginal revenue and marginal cost are equal, and it bases its price on the demand curve.
What is meant by economic profit?The difference between the proceeds from the sale of a product and the prices of all inputs used, as well as any opportunity costs, is known as an economic profit or loss. Opportunity expenses and explicit costs are subtracted from earned revenues to determine economic profit.
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TRUE/FALSE if the proceeds from the sale of a plant asset exceed its book value a gain on disposal occurs
Not entirely sure if this is what its asking for but if you made a profit on the plant or not depends on how much you spent to care for the plant.
For example, if you bought it for $50, gave it $10 of water, and sold it for $70 you would profit $10.
If you bought it for $50, gave it $50 dollars of water and sold it for $90, you would lose $10.
the president of your small company wants to better understand the basis on which you select your promotion mix. you indicate that the selection of promotion-mix ingredients and the degree to which they are used depend on all of the following except the .
If the president of your small company wants to better understand the basis on which you select your promotion mix. you indicate that the selection of promotion-mix ingredients and the degree to which they are used depend on all of the following except the: d. personal preferences of the marketers.
What is promotion mix?Promotion mix can be defined as the way in companies tend to make use of variety of promotion techniques or strategies so as to achieve their goals which is to draw customers to their product.
Chosen promotion-mix ingredients and the degree to which they are used depend the following
Organizational resources.Nature of the target market.Characteristics of the product.Most promotion companies tend to put the above into consideration when selecting their promotion mix.
Therefore the correct option is D.
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The complete question is:
The president of your small company wants to better understand the basis on which you select yourpromotion mix. You indicate that the selection of promotion-mix ingredients and the degree to whichthey are used depend on all of the followingexceptthe
a.organizational resources.
b.nature of the target market.
c.characteristics of the product.
d.personal preferences of the marketers.
abe's steakhouse is the largest upscale steakhouse company in the united states, based on total company- and franchisee-owned restaurants. the company's menu features a broad selection of high-quality steaks and other premium offerings. assume the information below is from a recent annual report: common stock, $0.01 par value; 100,030,000 shares authorized; 23,563,356 issued and outstanding at the end of the current year; 23,375,356 issued and outstanding at the end of last year. additional paid-in capital: $199,389,000 at the end of the current year and $170,431,000 at the end of last year. accumulated deficit: ($82,097,000) at the end of last year. in the current year, net income was $54,383,000 and a cash dividend of $7,138,000 was paid.
Equity held by shareholders refers to the sum that a company's founders have contributed to the enterprise. This covers the funds they have directly invested as well as the total amount of profits the business has generated and reinvested since its establishment.
The total assets less the total liabilities of the company can also be used to determine the shareholders' equity. The account shows what the company did with the profits and money it earned throughout the time period.
Indicating whether a corporation chooses to distribute profits as dividends to shareholders or reinvest them back into the business, it also indicates the dividend policy of the organisation. Common shares, preferred shares, and retained earnings make up the three components of shareholders' equity on the balance sheet.
The balance sheet treatement for shareholder's equity is attached as an image for the question asked.
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Disclaimer: Your question is incomplete. Please write the complete question by looking over the internet.
TRUE/FALSE. back in 2011, latin americans working in the united states sent an estimated 61 billion dollars to latin america.
Back in 2011, latin americans working in the united states sent an estimated 61 billion dollars to latin america. This is a true statement.
French ruler Napoleon III. He had a keen interest in expanding French commercial and political power in the region. He and his economic promoter Felix Berry called it "Latin America" to emphasize the Latin American background shared by France with the former viceroyalty of Spain and the Portuguese colony. The United States has attracted people from all over the world, bringing their own cultures and integrating them with what they find in America. The British founded the United States and therefore have the greatest influence on American culture. Other Europeans such as Germans, Irish, Italians and Russians also had a great deal of influence.
Africans were introduced as slaves and brought their own culture, making him one of the oldest contributing cultures in the United States. There are also Native Americans we found when the English and Spanish arrived. There is also a lot of influence from Asians. One of the most noticeable impacts is on the approximately 60 million Latin Americans in the United States. In summary, the United States is a melting pot because so many cultures contribute to the nation's culture.
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the is a form of organization that delivers goods and services at the lowest cost through specialization of jobs, close supervision of employees, and uniform regulations and procedures.
Bureaucracy is a form of organization that delivers goods and services at the lowest cost through specialization of jobs, close supervision of employees, and uniform regulations and procedures.
Both an administrative policy-making body and a group of non-elected government officials are referred to as bureaucracies. A bureaucracy, historically, was a form of government administration where departments were run by non-elected people. Today, bureaucracy is the administrative framework that governs all significant institutions, whether they are privately or publicly controlled. Bureaucracy is exemplified by the public administration in many jurisdictions and sub-jurisdictions, but it may also be seen in any institution with a centralized hierarchical structure, such as hospitals, academic institutions, commercial businesses, professional societies, social clubs, etc. Bureaucracy faces two main problems. Whether bureaucrats should be independent or directly answerable to their political overlords is the first conundrum.
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the 25 in a 50/100/25 split limit policy refers to the maximum amount the policy will pay for:
The 25 in a 50/100/25 split limit policy refers to the maximum amount the policy will pay for: C. medical coverage for one person in the other car.
What is medical coverage?Medical coverage can be defined as a health insurance coverage that help to cover the medical cost or medical expense of those that enroll for the plan.
The 25 in a 50/100/25 split limit policy tend to means the highest amount the policy will pay for medical coverage for one person in the other car.
Therefore the correct option is C.
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The complete question is:
The 50 in a 50/100/25 split limit policy refers to the maximum amount the policy will pay in:
property damage.
medical coverage for those in your car.
medical coverage for everyone in the other car.
medical coverage for one person in the other car.
The fed's actions do not change aggregate demand by any guaranteed amount, because it is not known __________
Due to the uncertainty surrounding the precise magnitude of M1 and M2 changes in reaction to changes in the monetary base, the Fed's actions have no assured effect on aggregate demand.
What are the Fed's top three activities?The Federal Reserve, also known as the Fed, is the most influential economic organization in the United States and possibly the entire world. Setting interest rates, controlling the money supply, and overseeing the financial system are some of its main functions.
What are the three things the Fed could do to help the economy?In order to control the money supply and promote stable economic growth, the Fed primarily employs three instruments. The instruments are: (1) reserve needs; (2) discount rate; and (3) open market transactions. Each of these has a unique effect on the money supply and has the ability to either increase or decrease the size of the economy.
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Alan is recording payroll that was processed outside of QuickBooks. Which QuickBooks function would be most useful? Payroll summary Pay bills Journal entries New invoice
Answer:
what are the answers
Explanation:
to the question
a _____ is responsible for creating and maintaining an organization’s intranet and extranet.
Webmaster is responsible for creating and maintaining an organization's intranet and extranet.
What is the job of a webmaster?The Webmaster is the main point of contact for all matters relating to the organization's website(s), and they are responsible for a wide range of tasks, such as web design and development, regular site and content maintenance, and various updates to make sure the sites are in line with the company's goals and objectives.
What do they now call a webmaster?A person who manages one or more websites is known as a webmaster. Web architects, web developers, site authors, site administrators, site owners, website coordinators, or website publishers may all be mentioned in the title.
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Which Agile Team event supports relentless improvement?
• Iteration Retrospective *
• Backlog refinement
• Iteration Planning
• Iteration Review
A Product Manager is working for an insurance company and is responsible for the internal systems used for managing claims. This is an example of what kind of Value Stream?
• Development Value Stream *
• Operational Value Stream
• Customer journey Value Stream
• Claims processing Value Stream
Which function is responsible for ensuring that the Agile Release Train has the content needed to successfully engage in Program Increment Planning?
• Release Train Engineer *
• Lean-Agile Center of Excellence
• Product Owner
• Product Management
What is the purpose of Iteration Goals?
• To align the team members and the Product Owner (PO) to the mission
• To ensure the team accomplishes all the committed Stories each Iteration *
• To provide the baseline required for measuring the team's performance
• To hold the team accountable to their goal
An Agile Release Train (ART) has implemented a completely automated Continuous Integration/Continuous Delivery (CI/CD) pipeline that can deploy code as it is checked into the source-code repository. How might a Product Owner (PO) adjust team events to take advantage of this capability and promote the flow of value?
• Identify Stories that are cleared for automatic delivery during Iteration Planning
• Release Stories that have been included in the team demo
• Review and accept Stories as they are completed
• Implement Feature toggles to control which Stories are released *
I put an asterisk next to the choices I think it is. Thanks for your help.
1. The Agile Team event supporting relentless improvement is A. Iteration Retrospective because it enables Agile Team members to discuss Iteration results, review practices, and identify improvements.
2. When a Product Manager works for an insurance company and is responsible for the internal systems for managing claims, it shows an example of B. Operational Value Stream.
3. 3. The function responsible for ensuring that the Agile Release Train has the content to engage successfully in Program Increment Planning is D. Product Management because they work with customers and Product Owners to understand, communicate and participate in solution validation.
4. The purpose of Iteration Goals is A. To align the team members and the Product Owner (PO) to the mission, ensuring agreement on the intended business value, team objectives, and shared purpose.
5. A Product Owner (PO) might adjust team events by A. identifying stories that are cleared for automatic delivery during Iteration Planning.
What is an Agile Team?An Agile Team (a scrum team) consists of the product owner, the scrum master, and the development team members.
In forming an Agile Team, employees, contractors, or freelancers can be selected and made responsible and wholly dedicated to executing the Agile project without any obligations to other projects.
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an employer agrees to pay $15,500 for medical insurance and contribute an additional 3% of the employees' $155,000 gross salaries to a retirement program. the entry to record these accrued benefits is: multiple choice credit to employee benefits expense $15,500. debit to payroll taxes expense $20,150. debit to employee retirement program payable $4,650. debit to medical insurance payable $15,500. debit to employee benefits expense $20,150.
Debit to Employee Benefits Expense $20,150.
When an employer pays for an employee's accident or health insurance the employer's payment is not wages and is not subject to Social Security Medicare and FUTA taxes or federal income tax withholding. Employer contributions do not have to be the same for singles and families and often are not.
When it comes to national averages employers typically pay an individual worker about 82% of their premiums and family members 70% of their premiums. Many health plans require patients to pay for a portion of the services they receive. This payment is called "co-insurance" and is usually a small percentage of service costs after the plan pays out the benefits. If the plan covers 70% of the cost the patient pays 30% of the cost.
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if a company reports a net loss it means
Answer: Negative net profit
Explanation:
A net loss occurs when the sum total of expenses exceeds the total income or revenue generated by a business, project, transaction, or investment.
Answer: Negative net profit
Explanation:
Inaccurate forecasts can result in negative outcomes like: O High inventory costs and increased profits O Low inventory costs and stockouts O Imbalances in supply and demand O Material shortages and decreased costs of obsolescence
Inaccurate forecasts can result in negative outcomes like Imbalances in supply and demand. Thus the correct option is C.
What is the Outcome?Any topic's outcome gives information about the subject, including the major point, which aids the reader in evaluating the topic's advantages and disadvantages and formulating a conclusion as a result.
The availability of the desired item on the market is referred to as supply. If the supply of the requested commodities is not met, there is scarcity, which is brought on by an imbalance between supply and demand as a result of poor forecasting.
Inaccurate forecasting might result in poor judgments that harm your business rather than support your development strategies.
Therefore, option C is appropriate.
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q5 separating equilibria 4 points grading comment: consider a separating equilibrium in the signaling model where education is not productive. q5.11 point grading comment: the type l workers get the efficient amount of education. choice 1 of 2:true choice 2 of 2:false
q5 separating equilibria 4 points grading comment: consider a separating equilibrium in the signaling model where education is not productive. q5.11 point grading comment: the type l workers get the efficient amount of education. True
Monetary equilibrium is a condition or nation in which financial forces are balanced. In impact, financial variables stay unchanged from their equilibrium values in the absence of external influences. financial equilibrium is also known as market equilibrium.
Financial market equilibrium takes place whilst supply and calls for degrees align, creating ideal market conditions for shoppers and dealers. The kinds of economic equilibrium consist of microeconomic and macroeconomic. In microeconomics, supply and demand between shoppers and dealers are balanced.
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What happens during a bank run?
a. Customers withdraw more money than the bank has on hand.
b. The federal government orders all banks to close.
c. States charter more banks than their citizens need.
d. the price of gold specie suddenly increases.
In the years leading up to the War of 1812, the U.S. economy had been on the upswing.
b. The federal government orders all banks to close.
The war with Britain, however, disrupted foreign trade. As one of the United States’ largest trading partners, Britain used its navy to blockade U.S. trade with other nations.
The war prevented U.S. farmers and manufacturers from exporting merchandise, blocked U.S. merchants and fisherman from sailing the high seas, and curtailed federal government revenues, which were derived mainly from tariffs on trade.
By 1815, the United States found itself heavily in debt, much like it had been at the end of the Revolutionary War thirty years earlier.
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as long as the ads are not overly intrusive, most users opt to play free versions of games with ads over paid versions that do not have ads.
As long as the advertisements are not overly intrusive, most users opt to play free versions of online games with ads over paid versions that do not have ads under digital marketing. This statement is true.
What are online games?Playing a video game online via means of internet browser or data services on electronic devices while connected to the internet, typically with other individuals.
Online games can be played on a variety of platforms, including PCs, laptops, and mobile phones, as well as specialized gaming consoles like PlayStations and Nintendo Switches.
Now a days for a digital marketing concept, online gaming is the best platform to launch and advertise the quality of products, gather the attention of potential customers.
Thus if free versions have less interruption due to advertisements paid versions of games will not be opted more.
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the critical path for the network activities shown below is ________ with duration ________.
The critical path for the network activities shown below is A-D-E with duration 13.
What is Critical path?
Generally, The sequence A-D-E with a length of 13 seconds is the crucial route for the network activity indicated below.
Critical path activities are those activities that, if they are not finished on time, will cause a delay in the completion of the whole project.
In this particular scenario, action A serves as a direct antecedent for both activity D and activity E, which is the very last activity.
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Which of the following is a major reason why businesses fail financially?
Undercapitalization is a major reason why businesses fail financially.
What is undercapitalization?When a company lacks sufficient capital to conduct normal business operations and pay creditors, it is said to be undercapitalized. This can happen if the company does not generate enough cash flow or is unable to obtain forms of financing such as debt or equity.
Undercapitalized businesses do not have enough capital to pay their creditors and must frequently borrow more money. If a company is unable to generate capital over time, its chances of bankruptcy rise as it loses the ability to service its debts.
Therefore, undercapitalization can lead to a business failing financially .
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Your question is incomplete, the complete question was
which is a major reason why businesses fail financial?
undercapitalization, undervalued stock , poor use of marketing mix , expense controls are too rigid.
Which of the following is an example of incidental damages you might be awarded if you are wrongfully terminated from your job?a. the costs of mailing resumes to prospective employersb. the costs of cosmetic surgeryc. the costs of psychological counselingd. the costs of a new wardrobe for future interviews
An example of incidental damages you might be awarded if you are wrongfully terminated from your job is the costs of mailing resumes to prospective employers.
Incidental damages- Incidental damages are expenses incurred by the non-breaching party to avoid other direct and consequential losses resulting from the breach.
The following types of damages are possible:
1] Ordinary damages. 2] Special damages. 3] Vindictive or Exemplary damages. 4] Nominal damages. 5] Damages for Deterioration caused by Delay. 6] pre-fixed damages.
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the historical discount rate of the firm may be a good indicator of the appropriate discount rate to apply to the firm in the future, when all of the following conditions hold true except:
The discount rate is used to discount the future cash flows of a stock must be the equity cost of capital for the stock.
What is the discount rate's mathematical formula?The two basic formulas for calculating the discount rate are the weighted average cost of capital (WACC) and the adjusted present value (APV). The WACC discount formula is: WACC = E/V x Ce + D/V x Cd x, whereas the APV discount formula is: APV = NPV + PV of the impact of financing (1-T).
What does the discount rate for NPV imply?Either the cost of borrowing money or the anticipated rate of return for investors. If shareholders expect a return of 12%, the company will use that rate to calculate NPV. If the company pays 4% interest on its debt, it is permitted to use 4% as the discount rate.
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In the following expression, the variable truckweight has the value 70000 and the variable weightlimit has the value 80000. truckweight < weightlimit what value does the expression evaluate to?
a. 70000
b. 80000
c. true
d. false
In the following expression, the variable truck weight has the true value does the expression evaluate. Thus, option (C) is correct.
What is the value?Values are the benchmarks or ideals by which we judge the acts, traits, possessions, or circumstances of others. Values that are embraced by many include those of beauty, honesty, justice, peace, and charity. Values are the benchmarks or ideals by which we judge the acts, traits, possessions, or circumstances of others. Values that are embraced by many include those of beauty, honesty, justice, peace, and charity.
Life values are the essential core beliefs that direct your actions and objectives as well as assist you in determining your level of overall success in life. For many people, values start early in life as their parents instill in them some of what they consider to be the most crucial principles.
Therefore, Thus, option (C) is correct.
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Junk bonds are high-risk, high-yield debt instruments. They are often used to finance leveraged buyouts and mergers, and to provide financing to companies of questionable financial strength. True/False
True, Junk bonds are high-risk, high-yield debt instruments. They are often used to finance leveraged buyouts and mergers, and to provide financing to companies of questionable financial strength.
What are Junk bonds?Junk bonds have a higher default risk than the majority of corporate and governmental obligations.
A bond is a debt or promise that, in exchange for being purchased, would pay investors interest payments as well as the return of their principal investment.
Junk bonds are bonds issued by struggling businesses that run a significant risk of defaulting, failing to make interest payments, or failing to return investors' principle.
Therefore, Junk bonds are a type of high-risk, high-yield debt. They are frequently employed to fund leveraged acquisitions and mergers as well as to lend money to businesses with uncertain financial standing.
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If a company uses the direct write-off method of accounting for bad debts,
a. It is applying the matching principle.
b. It will record bad debt expense only when an account is determined to be uncollectible.
c. It will reduce the accounts receivable account at the end of the accounting period for estimated uncollectible accounts.
d. It will report accounts receivable in the balance sheet at their net realizable value.
If a company uses the direct write-off method of accounting for bad debts It will record bad debt expense only when an account is determined to be uncollectible.
The obligation to pay money or other agreed value to a third party, a creditor, is called a debt. Debt differs from an immediate purchase in that payments are deferred or in installments. A sovereign state or country, city government, company or individual may be liable for the debt.
Contractual provisions governing the amount and timing of principal and interest payments typically apply to commercial debt. Debt includes mortgages, bonds, notes, and loans. In contrast to equity, debt is a form of financial transaction in financial accounting. The phrase can also be used figuratively to refer to tasks of a moral nature and other relationships that do not require the exchange of money.
Hence the correct option is C.
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steven and paul sign a contract whereby paul promises to wash steven's car once a week for $80 per month. the terms on the back of the contract were in very small print, contained excessive legalese, and required paul to also cook dinner for steven every day, do his laundry, and clean his apartment. paul later takes another look at the contract involving work for steven and tells steven that the contract is outrageous. which of the following would be a possible defense to steven's and paul's contract involving chores based upon the size of the print and excessive legalese on the back of the contract?
Steven's and paul's an agreement that establishes, clarifies, and governs the rights and obligations of two or more parties is known as a contract.
A contract usually entails the transfer of products, services, money, or a promise to transfer any of those at a later time. In the event of a contract violation, the harmed party may pursue legal remedies including damages or revocation. The concept that agreements must be upheld is the foundation of contract law, a branch of the law of obligations that deals with contracts.
Like other spheres of private law, contract law varies from one country to the next. Common law jurisdictions, civil law jurisdictions, and mixed law jurisdictions which incorporate features of both common and civil law are the three main categories into which the various systems of contract law can be broadly divided.
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the company has its camera and drone assembly facilities in: a)Thailand b)South Korea c) the United Statesd)Japan e)Taiwan
The business enterprise has its digital digicam and drone meeting centers in e)Taiwan.
The required details about Taiwan is mentioned in below paragraph.
Taiwan is famous for generating some specific things. Most well-known of all are its electronics and their components. These Taiwanese merchandise aren't arbitrarily well-known – they make up a large part of Taiwan’s exports and that they run the gamut of the entirety electric, from flat screensto contact screens, microchips to optical drives, etc.No rely what logo or sort of laptop you’re analyzing this on, the probabilities are overwhelming that a few part, or most, of what’s interior of it was made in Taiwan. The island of Formosa is the world’s biggest unmarried laptop chip producer, and that they made high-quality breakthroughs in contact display era that has spurred the cellphone revolution.
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In the long run, a firm in a perfectly competitive market earns zero economic profit, so the opportunity in the short run to enjoy positive economic profits will cause existing firms to increase output and new firms to enter the market. 1st attempt See Hint the market, driving the market price If prices are below the average total cost of production in the long run firms will until the remaining firms earn the market, driving the market price If prices are below the average total cost of production in the long run firms will until the remaining firms earn stay in enter exit the market, driving the market price If prices are below the average total cost of production in the long run firms will until the remaining firms earn down | up to stay the same until the remaining firms earn a small negative economic profit zero economic profit positive economic 25/26 profit
Given the short-term positive economic profit, new businesses should enter the market over time, increasing the size of the market.
What transpires over time in a market that is intensely competitive?In a perfectly competitive market, businesses can only make or lose money in the short term. Because an infinite number of enterprises generate uniform, infinitely divisible things, profits and losses are ultimately eliminated.
Is there ever no economic profit in the long run?Economic gains spur entry, economic losses cause exit, and in the long run, firms in a perfectly competitive industry will generate no economic gains.
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Trader wants to hedge a long stock position from short term downside risk. Which strategy best aligns to this goal? o Long straddle o Long strangle o Collar o Long call
The collar is the strategy that best aligns to this goal if Trader wants to hedge a long stock position from short term downside risk. Option C.
What is the collar in business?A collar strategy, also known as a hedge wrapper, enables an investor to lock in the investment's maximum gain and maximum loss. By buying shares, protective (out-of-the-money) puts, and simultaneously selling an out-of-the-money call option, an investor can build a collar.
A collar is an options strategy that comprises selling an upward call and purchasing a downside put and is used to limit significant upside gains while limiting large losses.
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 Which of the following best describes how each share of par value stock issued is reported in the Common Stock account? Multiple Choice Lower of cost or market O ) Current market value O Average issue price O O Par or stated value Which of the following describes, in part, how the declaration of a stock dividend affects the elements of the financial statements? Multiple Choice Decreases paid-in capital in excess of par value-common Decreases total assets o no effect on total No effect on total stockholders' equity o oo Increases total stockholders' equity How does the payment of a previously declared cash dividend affect the elements of the financial statements? Multiple Choice None of these answer choices are correct. Increases liabilities and decreases stockholders' equity o Decreases liabilities and increases stockholders' equity oo Decreases assets and stockholders' equity
A common stock account is a general ledger that records the par value of all common stock issued by a company. If these shares are sold for more than their par value, the excess amount will be posted separately to an additional deposit account.
At issuance, common stock is recorded at par and any amount received in excess of par is recorded in the account as equity in excess of par. If spent on assets or services instead of cash, recognition is based on the fair value of the shares given.
Equity refers to the assets remaining in the company after all liabilities have been settled. This figure is calculated by subtracting total liabilities from total assets. Alternatively, it can be calculated by subtracting treasury shares from the sum of share capital and retained earnings.
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