Which of the Following Would Affect Stockholders' Equity

question 7

Multiple Choice

Which of the following would affect stockholders' equity?

• A) A company borrows $100 million and buys $100 million in equipment.
• B) A company pays $100 million to stockholders as a dividend.
• C) A company sells $100 million in assets for $100 million cash.
• D) A company receives payment for $100 million in accounts receivable.

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Definitions:

Distributive process

The method through which resources or outcomes are allocated among parties, often implying a zero-sum scenario similar to distributive bargaining but with a broader application.

Integrative process

A negotiation strategy focused on collaboration and finding mutually beneficial solutions for all parties involved.

Field analysis

A systematic examination of the context, stakeholders, and dynamics involved in a situation, often used to inform strategies or decisions.

Key parties

The main or most important individuals or groups involved in an event, situation, or decision-making process.