An increase in Stockholders' Equity from revenues earned will also result in an increase in:
A) liabilities.
B) assets.
C) expenses.
D) cash flow from financing activities.

Question

Quizplus · Accepted Answer

An increase in Stockholders' Equity from revenues earned will result in an increase in assets, as the company has earned more value and resources as a result of its operations. This increase could come from an increase in cash, accounts receivable, inventory, or other assets. It would not result in an increase in liabilities or expenses, as those are separate categories on the balance sheet and related to different activities. Cash flow from financing activities may be affected by an increase in Stockholders' Equity, but it is not directly related to the increase in assets.

An Increase in Stockholders' Equity from Revenues Earned Will Also