Which of the Following Transactions Will Increase Stockholders' Equity

question 39

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:

Insta Bank

A digital or online bank providing instant access to banking services primarily through mobile apps.

Smartphone Apps

Software applications designed to run on smartphones, offering a wide range of functionalities from productivity to entertainment.

Transactions

the exchange of goods, services, or funds between two or more parties.

Maintain

To keep something in its existing state or condition, ensuring its preservation or continuation over time.