what-is-the-impact-on-equity-when-a-company-issues-common-stock-for-services

Question

What is the impact on equity when a company issues common stock for services?

Accepted Answer

Equity increases because new shares are issued.

Answer

Equity remains unchanged because no cash is involved.

Answer

Equity decreases because the services are expensed.

Answer

Equity decreases because liabilities increase.