An increase in stockholders' equity can be calculated as
A)new issuance of stock plus net income plus cash dividends declared.
B)new issuance of stock plus net income less cash dividends declared.
C)new issuance of stock less net income less cash dividends declared.
D)new issuance of stock less net income plus cash dividends declared.
E)Cannot be determined from the information provided

Question

Quizplus · Accepted Answer

An increase in stockholders' equity can be calculated as new issuance of stock plus net income less cash dividends declared. This is because new issuance of stock increases the stockholders' equity, net income also positively impacts the equity and cash dividends declared reduce the equity.

An Increase in Stockholders' Equity Can Be Calculated as