Which of the following does not affect stockholders' equity?
A) Paying wages to employees
B) Receiving an investment of cash from an owner
C) Selling goods to customers with payment due in 30 days
D) Purchasing equipment with payment due in 30 days
E) None of the above

Question

Quizplus · Accepted Answer

Paying wages (A) decreases retained earnings, affecting stockholders' equity. Receiving an investment (B) increases stockholders' equity. Selling goods on credit (C) increases retained earnings through revenue, affecting equity. Purchasing equipment on credit (D) impacts assets and liabilities but does not directly affect stockholders' equity until payment impacts cash or financing arrangements alter equity.

Which of the Following Does Not Affect Stockholders' Equity