Which of the following does not affect the equity of a business?
A)Unearned Revenue
B)Common Stock
C)Services Revenue
D)Wages Expense
E)Dividends

Name: Which of the following does not affect the equity of a business? A)Unearned Revenue B)Common Stock C)Services Revenue D)Wages Expense E)Dividends
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Question

Quizplus · Accepted Answer

Unearned Revenue affects the liability side of the balance sheet and does not directly impact equity until the revenue is earned and recognized, which then increases equity through increased net income.

Which of the Following Does Not Affect the Equity of a Business