Which of the following situations increase stockholders' equity?
A) Supplies are purchased on account.
B) Services are provided on account.
C) Cash is received from customers on account.
D) Utility bill will be paid next month.

Question

Which of the following situations increase stockholders' equity?
A) ​Supplies are purchased on account.
B) ​Services are provided on account.
C) ​Cash is received from customers on account.
D) ​Utility bill will be paid next month.

Quizplus · Accepted Answer

Providing services on account increases stockholders' equity because it increases revenue, which in turn increases retained earnings, a component of stockholders' equity.

Which of the Following Situations Increase Stockholders' Equity