All of the following would result in an increase in stockholders equity EXCEPT
A) the company sold common stock at par value.
B) the company sold common stock above par value.
C) the company purchased treasury stock.
D) the company had positive net income greater than dividends paid.

Question

Quizplus · Accepted Answer

The purchase of treasury stock reduces stockholders equity as it is a deduction from retained earnings. A, B, and D all result in an increase in stockholders equity.

All of the Following Would Result in an Increase in Stockholders