Which of the following is correct?

Question

Quizplus · Accepted Answer

This equation is based on the accounting equation, which shows that assets equal liabilities plus equity. To calculate ending equity, we start with beginning equity and add net income, but subtract dividends as they reduce the overall equity amount. However, if there were new stock issuances during the period, we would add that amount to the equation as it increases equity. Therefore, the correct equation is Beginning equity + Net income - Dividends + Stock = Ending equity.

Which of the Following Is Correct