Which of the Following Situations Increase Stockholders' Equity

question 78

Multiple Choice

Which of the following situations increase stockholders' equity?

• A) Supplies are purchased on account.
• B) Services are provided on account.
• C) Cash is received from customers.
• D) Utility bill will be paid next month.

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Definitions:

Exchange Gains

A financial outcome resulting from favorable changes in exchange rates, leading to increased value of foreign currency transactions or holdings prior to their conversion to a home currency.

Exchange Rate

The amount one currency is valued at when converting to a different one.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Loan

A financial arrangement where one party lends an asset, usually money, to another party under the condition of eventual repayment of the principal amount along with interest or charges.