Which of the Following Transactions Increases Both Assets and Owner's

question 113

Multiple Choice

Which of the following transactions increases both assets and owner's equity?

• A) Receipt of payment from a credit customer
• B) Receipt of a bank loan
• C) Rendering of a service, payment not yet received
• D) Withdrawal of cash by the owner

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Definitions:

Stock Dividends

A form of dividend paid to shareholders in the form of additional shares rather than cash, reflecting a company's desire to reinvest its earnings.

Shareholder Share

Represents the portion of a company's equity owned by an individual or institutional shareholder.

EPS

Earnings Per Share represents the fraction of a firm's profits designated for each share of its common stock, serving as a financial metric.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, typically to conserve the company's cash.