Transactions Affecting Stockholders' Equity Include

question 170

Multiple Choice

Transactions affecting stockholders' equity include

• A) capital contributions and payment of liabilities
• B) capital contributions,stockholder dividends,earning of revenues,and incurrence of expenses
• C) capital contributions,earning of revenues,incurrence of expenses,and collection of accounts receivable
• D) stockholder dividends,earning of revenues,incurrence of expenses,and purchase of supplies on account

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Definitions:

Net Operating Income

The profit a company makes after deducting operating expenses from gross profit, not including income and expenses from investments and interest.

Variable Costing

An accounting method that only considers variable costs in determining the cost of products.

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product costs, excluding fixed costs.

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and a portion of all overhead costs.