Which of the following will increase stockholders' equity?
A)Expenses revenues
B)Owner investment
C)Accounts payable
D)Dividends

Question

Which of the following will increase stockholders' equity?
A)Expenses > revenues
B)Owner investment
C)Accounts payable
D)Dividends

Quizplus · Accepted Answer

Owner investment (also known as additional paid-in capital) increases the stockholders' equity by increasing the total amount of funds that the company has received from its owners. Expenses > revenues (choice A) decreases the stockholders' equity as there is a net loss. Accounts payable (choice C) has no effect on stockholders' equity as it is a liability. Dividends (choice D) decrease the stockholders' equity as it represents a distribution of the company's profits to its owners.

Which of the Following Will Increase Stockholders' Equity