Which of the following statements regarding the activities of Forman Corp.is true?
A)Revenues decrease Forman's stockholders' equity.
B)Expenses increase Forman's stockholders' equity.
C)Expenses decrease Forman's stockholders' equity.
D)None of these answer choices is correct.

Question

Quizplus · Accepted Answer

Expenses, by definition, decrease a company's net income and therefore decrease stockholders' equity. Revenues, on the other hand, increase net income and stockholders' equity. Thus, statement A is false and statement C is true.

Which of the Following Statements Regarding the Activities of Forman