False. The issuance of stock increases a company's assets and increases its stockholders' equity.
False. The issuance of stock increases a company's assets and increases its stockholders' equity.
When a company issues stock, it receives cash from investors in exchange for shares of ownership in the company. This cash is then recorded as an asset on the company's balance sheet. The increase in stockholders' equity is equal to the amount of cash received from investors.
Therefore, the statement "The issuance of stock decreases a company's assets and increases its stockholders' equity" is false.