Indicate whether each of the following statements about equity is true or false.a)Expenses decrease retained earnings.b)Stockholders' equity and liabilities can be viewed either as sources of assets or claims to assets of the business.c)Retained earnings is increased by loans received from a bank.d)Dividends paid to stockholders decrease common stock.e)Generally, assets are reported at the actual price paid for them when purchased regardless of subsequent changes in market value.

Question

Quizplus · Accepted Answer

b)True c)False d)False e)T
Loans received from a bank increase assets and liabilities, but do not affect retained earnings. Dividends paid to stockholders decrease retained earnings, not common stock.

Indicate Whether Each of the Following Statements About Equity Is