If a company's total assets increased while liabilities and common stock were unchanged, then which of the following statements is true?
A) Revenues were greater than expenses.
B) Retained earnings were less than net income during the period.
C) No dividends were paid during the period.
D) The company must have purchased assets with cash.

Question

Quizplus · Accepted Answer

If a company's total assets increased while its liabilities and common stock remained unchanged, it indicates that the company's equity increased due to operations. This is typically a result of revenues being greater than expenses, leading to an increase in net income and thus an increase in retained earnings, part of shareholders' equity.

If a Company's Total Assets Increased While Liabilities and Common