Which of the Following Will Increase Stockholders' Equity

question 175

Multiple Choice

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

---

Definitions:

Leverage

The use of borrowed funds to increase the potential return of an investment or project.

ROE

Return on Equity evaluates a company's profit generation capacity by showing the amount of profit made from the investment of its shareholders.

EPS

Earnings Per Share, a key financial metric calculating the portion of a company's profit allocated to each outstanding share of common stock.

Economic Climate

The overall state of the economic environment, factoring in aspects like growth rates, employment levels, inflation, and consumer spending.