If Company A issues $10,000 worth of shares, which financial elements are affected?

When Company A issues $10,000 worth of shares, two financial elements are affected: share capital on the balance sheet and cash.

When shares are issued, the company receives cash from investors, which increases the cash account on the balance sheet. This cash inflow also results in an equivalent rise in share capital, reflecting the funds generated through the equity financing. The share capital represents the total value of shares that have been issued to investors, signaling that equity has been raised to fund the company's operations or growth.

While options focusing on cash only or specific sections like common shares on the income statement or the equity statement mention important financial concepts, they do not fully capture the complete picture of what occurs during the share issuance process. The income statement is primarily concerned with revenues and expenses over a period and does not reflect transactions related to equity financing like share issuances. Moreover, mentioning only the common shares section of the equity statement ignores the cash inflow that accompanies the issuance of shares. Thus, the response highlights both the balance sheet impact and the funds received, providing a comprehensive view of the transaction.