Which transaction increases stockholders' equity?
A)sale of common stock
B)dividends that are declared and paid
C)expenses greater than revenues for the period
D)payment of operating expenses

Question

Quizplus · Accepted Answer

Sale of common stock increases stockholders' equity as it represents the amount of capital contributed by the investors to the company. Dividends that are declared and paid reduce stockholders' equity. Expenses greater than revenues for the period result in a net loss and reduce stockholders' equity. Payment of operating expenses reduces assets and has no effect on stockholders' equity.

Which Transaction Increases Stockholders' Equity