Which of the Following Transactions Will Increase Stockholders' Equity

question 54

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 president of the company buys a new personal automobile.
• D) The company makes a payment on account.

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Definitions:

Physiological Responses

Automatic reactions of the body to the environment, including heartbeat, breathing rate, and muscle tension among others.

Emotion-Arousing

Referring to stimuli or situations that evoke an emotional response.

Parasympathetic Activity

The aspect of the autonomic nervous system that conserves energy by slowing the heart rate, increasing intestinal and gland activity, and relaxing sphincter muscles.

Physiological Response

Bodily reactions, such as changes in heart rate, breathing, and hormone levels, to stimuli or activities.