Whenever __________ are sold by a company, they pay out dividend payments to the purchaser, and the amount of the sale is shown as owners' equity on the balance sheet.

Question

Quizplus · Accepted Answer

Stocks represent ownership in a company and when they are sold, the company pays out dividend payments to the purchaser, and the proceeds of the sale are shown as owners' equity on the balance sheet. Capital assets, short-term loans, and bonds do not always result in dividend payments or owners' equity on the balance sheet.

Whenever __________ Are Sold by a Company, They Pay Out