An increase in revenue will result in an increase in stockholders' equity.

Question

Quizplus · Accepted Answer

Revenue is one of the factors that affects stockholders' equity. When a company generates revenue, it increases its assets and this can result in an increase in stockholders' equity if there are no significant changes in liabilities. However, it is important to note that other factors such as expenses, dividends, and stock issuances can also impact stockholders' equity.

An Increase in Revenue Will Result in an Increase in Stockholders