Transactions affecting stockholders' equity include:
A)common stock, revenues, expenses and collection of an account receivable.
B)retained earnings, revenues, expenses, and liabilities.
C)common stock, revenues, expenses, dividends and retained earnings.
D)common stock, retained earnings, revenues and assets.

Question

Quizplus · Accepted Answer

Common stock and dividends affect the common stock account, revenues and expenses affect retained earnings, and retained earnings is a component of stockholders' equity. Liabilities and assets do not directly affect stockholders' equity.

Transactions Affecting Stockholders' Equity Include