Increases in Shareholders' Equity Arise From

question 11

Multiple Choice

Increases in shareholders' equity arise from:

• A) net income earned during the period
• B) payment of dividends
• C) investments by the owner
• D) both investments by the owner and net income earned during the period

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Definitions:

ASPE

ASPE stands for Accounting Standards for Private Enterprises, a set of accounting practices and standards for private companies in Canada.

Diminishing-Balance

A method of calculating depreciation that results in larger depreciation charges in the early years of an asset's life and smaller charges in the later years.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life to account for the reduction in value due to wear and tear, age, or obsolescence.

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.