what-is-the-impact-on-a-companys-equity-and-asset-accounts-when-issuing-no-par-v

Question

What is the impact on a company's equity and asset accounts when issuing no par value stock?

Accepted Answer

Both equity and assets increase by the total cash received from the stock issuance.

Answer

Both equity and assets decrease by the total cash received from the stock issuance.

Answer

Assets increase, but equity remains unchanged.

Answer

Equity increases, but assets remain unchanged.