Question

the journal entry to record the issuance of common stock in exchange for cash involves: a debit to common stock and a credit to cash all of these answer choices are incorrect a debit to cash and a credit to common stock a debit to cash and credits to common stock and retained earning question 5 8 pts intangible assets usually are reported in the balance sheet as current assets. true false question 6 8 pts which of the following is a sub - classification of assets in the balance sheet? cash and cash equivalents revenue disposable assets current assets

Explanation:

• For the first question, when a company issues common - stock in exchange for cash, it receives cash (an asset, so debit cash) and issues common stock (an equity account, so credit common stock).
• For the second question, intangible assets have a long - term nature and are not current assets. Current assets are those expected to be converted to cash or used up within one year or the operating cycle, whichever is longer.
• For the third question, cash and cash equivalents and current assets are sub - classifications of assets on the balance sheet. Revenue is an income statement item, and "disposable assets" is not a standard balance - sheet sub - classification.

Answer:

• Question 1: A debit to cash and a credit to common stock
• Question 2: False
• Question 3: Cash and cash equivalents, Current assets