Transactions affecting stockholders' equity include
A) stockholder investments and payment of liabilities
B) stockholder investments, dividends, earning of revenues, and incurrence of expenses
C) stockholder investments, earning of revenues, incurrence of expenses, and collection of accounts receivable
D) stockholder dividends, earning of revenues, incurrence of expenses, and purchase of supplies on account

Question

Quizplus · Accepted Answer

Stockholder investments increase equity, dividends decrease equity, revenues increase equity, and expenses decrease equity. Therefore, all of these transactions would affect stockholders' equity. Options A, C, and D are partially correct but not complete.

Transactions Affecting Stockholders' Equity Include