If the shareholders' equity at the end of the accounting period is greater than the shareholders' equity at the beginning of the accounting period, the firm's
A) capital has increased
B) assets have increased
C) cash has increased
D) capital has been maintained

Question

Quizplus · Accepted Answer

Shareholders' equity represents the ownership portion of a company's assets. An increase in shareholders' equity means that the company has either earned more revenue or reduced its expenses, resulting in a higher net income. This increase in profits ultimately leads to an increase in the company's capital.

If the Shareholders' Equity at the End of the Accounting