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.

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Definitions:

Production Equipment

Machinery and tools that are used in the manufacturing process to create products or handle materials.

Contingencies Of Power

are external or internal factors that can affect the amount of power an individual or entity possesses or exercises.

Commitment

The state or quality of being dedicated to a cause, activity, or goal.

Upward Appeal

A tactic in which an employee tries to gain support or persuade someone by appealing to a higher authority within the organization.