The equity of a corporation changes because of profits or losses,distributions of incomes (dividends)and shareholder investments.

Name: The equity of a corporation changes because of profits or losses,distributions of incomes (dividends)and shareholder investments.
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Question

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The equity of a corporation can increase due to profits and shareholder investments, while it can decrease due to losses and dividend distributions. Therefore, the equity of a corporation is subject to change based on these factors.

The Equity of a Corporation Changes Because of Profits or Losses,distributions