With Respect to the Balance Sheet, an Increase in Equity

question 114

Multiple Choice

With respect to the balance sheet, an increase in equity of $2,000 with an increase in net income to $2,500, leads us to believe:

• A) the firm paid a dividend of $500.
• B) the firm plowed $500 back into the company.
• C) $500 went into retained earnings.
• D)debt increased by $2,000.