Asked by Connor Dimarco on Jul 08, 2024
Verified
Which of the following will increase stockholders' equity?
A) expenses > revenues
B) the company pays dividends
C) revenues > expenses
D) cash is received from customers on account
Stockholders' Equity
Shareholders' equity in a corporation, which is the value of the assets that remains once all debts and obligations are deducted.
Revenues
The overall income received from selling products or services, which are essential to a firm's primary business.
Expenses
The money spent or costs incurred by a business in the process of earning revenue.
- Comprehend the effects various transactions have on equity of shareholders.
Verified Answer
VG
Valerie GalindoJul 13, 2024
Final Answer :
C
Explanation :
Revenues > expenses means the company has made a profit, which adds to the stockholders' equity.
Learning Objectives
- Comprehend the effects various transactions have on equity of shareholders.
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