A group of individuals formed a new company with an investment of $500,000. The most likely effect
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A group of individuals formed a new company with an investment of $500,000. The most likely effect of this transaction on the company’s accounting equation at the time of the formation is an increase in cash and:
A. an increase in revenue.
B. an increase in liabilities.
C. an increase in contributed capital.
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The most likely result of the formation of the company with an investment of 500000 will be an incre...View the full answer
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Related Book For 
International Financial Statement Analysis CFA Institute Investment Series
ISBN: 9780470287668
1st Edition
Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie
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