Question: This week in our text and video lectures, we are starting to study how companies can get and record funding. There are three ways: from

This week in our text and video lectures, we are starting to study how companies can get and record funding. There are three ways: from Liabilities, from issuing Stocks, or from Profitable Operations.

  • Describe each of these three ways and indicate where on the financial statements you could find the information about each. Hint: It might be in more than one place.
  • Give the advantages and disadvantages for each.
  • Give an example for each and show how you would record the transaction in the accounting.

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