Equity is increased by
A)liabilities.
B)expenses.
C)income.
D)dividends.

Name: Equity is increased by A)liabilities. B)expenses. C)income. D)dividends.
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Question

Quizplus · Accepted Answer

Equity represents the residual value of assets after subtracting liabilities. Income adds value to the company's assets, so it increases equity. Expenses and dividends reduce equity, while liabilities increase both assets and liabilities, thus not affecting equity.

Equity Is Increased by