Asked by Richard Sullivan on May 26, 2024
Verified
Which of the following statements about stockholders' equity is false?
A) Stockholders' equity is the shareholders' residual interest in the company resulting from the difference in assets and liabilities.
B) Stockholders' equity accounts are increased with credits.
C) Stockholders' equity results only from contributions of the owners.
D) The purchase of land for cash has no effect on stockholders' equity.
Stockholders' Equity
The ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities.
Contributions
Monetary or other forms of aid provided by donors to organizations which could include grants, donations, or specific asset gifts.
Shareholders
Individuals or entities that own shares in a corporation, giving them partial ownership and rights to profits.
- Comprehending the elements and organization of the balance sheet, encompassing equity of stockholders, assets, and obligations.
- Understanding the function and management of different components in financial reports, such as assets (both current and non-current), liabilities, and elements of stockholders' equity, including common stock and additional paid-in capital.
Verified Answer
Learning Objectives
- Comprehending the elements and organization of the balance sheet, encompassing equity of stockholders, assets, and obligations.
- Understanding the function and management of different components in financial reports, such as assets (both current and non-current), liabilities, and elements of stockholders' equity, including common stock and additional paid-in capital.
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