An increase in ________ will affect shareholders' equity.
A)price per ordinary share
B)retained earnings
C)dividends paid
D)both A and C

Question

Quizplus · Accepted Answer

Price per ordinary share (A) affects shareholders' equity through the increase in the value of the company's assets. Dividends paid (C) reduce shareholders' equity by distributing profits to shareholders. Therefore, an increase in both share price and dividends paid affects shareholders' equity. Retained earnings (B) also affect shareholders' equity but are not included in the choices provided.

An Increase in ________ Will Affect Shareholders' Equity