Which of the Following Situations Increase Stockholders' Equity

question 78

Multiple Choice

Which of the following situations increase stockholders' equity?

• A) Supplies are purchased on account.
• B) Services are provided on account.
• C) Cash is received from customers.
• D) Utility bill will be paid next month.

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Definitions:

Postretirement Healthcare Benefits

Benefits that an employer provides to retirees for healthcare, excluding pension benefits.

Pensions

Retirement plans funded either by employers or governments, providing income to individuals upon retirement.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction, particularly in the United States.

Projected Benefit Obligation

The present value of estimated future payments required to settle the obligations of a pension plan over its employees' expected future service.