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.

---

Definitions:

Concrete Operational Stage

A developmental phase identified by Piaget, occurring between ages 7 to 12 years, during which children gain a better understanding of concrete events and logical operations.

Critical Period

A specific time in an organism's development during which the presence or absence of certain experiences has a long-lasting impact on future psychological capabilities and behavior.

Higher Levels of Thinking

Cognitive processes that involve analysis, synthesis, and evaluation, requiring more advanced intellectual skills and judgement.

Temporary Support

Assistance or help provided on a short-term basis to address an immediate need or crisis.