Which of the following statements about shareholders' equity is not correct?
A) Shareholders' equity is the shareholders' residual interest in the company resulting from the difference in assets and liabilities.
B) Shareholders' equity results only from contributions of the owners.
C) Shareholders' equity accounts are increased with credits.
D) The purchase of equipment for cash has no effect on shareholders' equity.
Correct Answer:
Verified
Q12: It is assumed that the activities of
Q13: Which of the following defines liabilities?
A)Possible debts
Q14: If total liabilities decreased by $14,000 during
Q15: Which of the following is not classified
Q16: Which of the following is an example
Q18: Which of the following defines assets?
A)Probable future
Q19: Where would we report changes in shareholders'
Q20: Abe Cox is the sole owner and
Q21: Winsome Inc.reports total assets and total liabilities
Q22: When recording transactions in T-account format,we must
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