With respect to the balance sheet, an increase in equity of $2,000 with an increase in net income to $2,500, leads us to believe:

Name: With respect to the balance sheet, an increase in equity of $2,000 with an increase in net income to $2,500, leads us to believe:
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Question

Quizplus · Accepted Answer

The increase in equity of $2,000 with a net income of $2,500 suggests that the firm paid a dividend of $500, as the difference between net income and the increase in equity is the dividend paid.

With Respect to the Balance Sheet, an Increase in Equity