Which of the Following Transactions Will Increase Stockholders' Equity

question 10

Multiple Choice

Which of the following transactions will increase Stockholders' Equity?

• A)The company pays a dividend to its shareholders.
• B)The company issues common stock to new shareholders.
• C)The company purchases equipment.
• D)The company makes a payment on account.

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Definitions:

Negligent

Failing to exercise the care that a reasonably prudent person would exercise in similar circumstances.

Optometrist

An optometrist is a healthcare professional who specializes in examining the eyes for vision and health problems, prescribing corrective lenses, and providing certain types of eye care.

Ratification

The formal approval or confirmation of an act, agreement, or treaty by those who are parties to it.

Unauthorized Signature

An unauthorized signature is one made without the express or implied permission of the person whose name is signed, rendering the agreement or document potentially invalid.