Explain why stockholders’ equity is increased by revenuesand decreased by expenses.

Q: Name the two main components of stockholders’ equity. Describe the main sources of change in each…

A: Stockholder’s Equity is the amount of remaining assets if all the liabilities in the business are…

Q: All are financial measures, except: A. Market share B. Revenue growth C. Earnings per share D.…

A: Solution: All are financial measures, except "Reduction of past due accounts".

Q: Which of the following describes the information reported in the statement of stockholders’ equity?…

A: Financial statement   A formal record for the financial activities and the position of an…

Q: the declaration of cash dividends and stock dividends both reduce retained earnings

A: Solution- Cash Dividends Cash dividends affect two areas on the balance sheet: the cash and…

Q: Which does not affect total stockholders' equity? Property dividend Cash dividend…

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Q: When the Dividends account increases, how is the Accounting Equation impacted? O Decrease…

A: Dividends are the distributions that a company makes out of the earned profits to its shareholders…

Q: What amount of stockholder's equity will be reported?

A: Power corporation acquired Silk corporation common stock = 70% It means the power corporation…

Q: The return on equity is calculated using which of the following formulas? Multiple Cholce Net Income…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: revenues ew less than expenses, what results on the income statement? What impact does an increase…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: When expenses exceed revenues in a given period,a. Stockholders’ equity will not be impacted.b.…

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Q: Match each ratio that follows to its use. Items may be used more than once.     Indicate…

A: Definition:   Ratio analysis: Ratio analysis is a quantitative method of gaining insight into a…

Q: What are the distributions to the stockholders by a firm called?  A. retained earnings B. net income…

A: Any Company Typically divides the Profits between itself to the company or it's stock holders.…

Q: Indicate whether statements regarding dividends is true or false. Cash and stock dividends reduce…

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Q: To find out the total amount of dividends distributed by the company, one should refer to   Choices;…

A: Introduction:- The following are main financial statements of company as follows under:- Income…

Q: When liabilites increase and stock holder equity decreases, what is the total assets?  shouldn't it…

A: According to the accounting equation, the total of liabilities and the stockholder equity is the…

Q: The effects of paying salaries for the current period are to:a. increase assets and increase stock-…

A: Salary is an expense for a company and an obligation due towards the employees working in that…

Q: Revenues are increased with: A. Debits because they decrease stockholder's equity B. Credits…

A: Revenue refers to the total earnings generated from the sale of goods or rendering services. It is…

Q: a. The rate earned on stockholders' equity % b. The rate earned on common stockholders' equity

A: Rate earned on stockholder’s equity and rate earned on common stockholders are the accounting…

Q: True or False? Retained Earnings represents the amount that stockholders have invested in the…

A: Introduction: Retained Earnings: Ending retained Earnings value to be shown in Balance sheet.

Q: How do dividends affect owners’ equity? Are they treated as a business expense? Explain.

A: Dividends are referred to those returns which are provided to the shareholders, or stockholders of…

Q: Stockholders' equity consists of paid-in (or contributed) capital and retained earnings. True or…

A: The stockholder's equity is the remaining amount of assets after paying out its total liabilities.…

Q: What is the effect on the accounting equation when a stock dividend is declared? What is the effect…

A: Stock Dividends:  It refers to the payment of the dividend to its shareholders by the corporation in…

Q: Net Income: A) Decreases equity. B) Represents the amount of assets stockholders put into a…

A: Net income — also referred to as net profit, net earnings or the bottom line — is the amount an…

Q: Why are expenses categorized as stockholders' equity in journal entries? Is there an economic…

A: Expenses are the recurring cash outflows of the business which includes rent, salaries, etc.…

Q: The effect of a stock dividend is to change the composition of stockholders' equity. decrease total…

A: The stock dividend is a method of capitalizing the retained earnings. Generally, the large stock…

Q: Credits always increase which accounts? Assets, Liabilities and Common Stock Liabilities, Revenues…

A: Lets understand the basics. As per golden rule of accounting, all asset accounts and expense…

Q: Which one of the following normally has a net debit balance? A. Contributed capital that is in…

A: The accounts prepared in the accounting system usually have two kinds of balances, debit balance and…

Q: Expenses are increased with: A. Debits because they decrease stockholders' equity B. Credits…

A: Expenses :— As per the accounting term is the money spent, or costs incurred, by a business in their…

Q: Which of the following items reduces Net Income? (check all that apply) Revenues Stockholders'…

A: The difference of revenues and expenses is known as net income.

Q: Which of the following statements is not true? O a. Expenses increase stockholders' equity. O b. The…

A: The accounting equation states that assets equal to sum of liabilities and equity.

Q: a. Where should a declared but unpaid cash dividend be reported on the balance sheet?b. Where should…

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Q: Which of the following does not decrease retained earnings? Select one: a. Stock dividends b. Cash…

A: In this question has covered the concept of Retained Earnings

Q: The effect of a stock dividend is to change the composition of stockholders' equity. decrease total…

A: Solution The journal entry for issuance of stock dividend is Retained earnings debit Common stock…

Q: Which of the following would cause a decrease in stockholders' equity? (A) Purchase of equipment (B)…

A: The shareholder's equity section is a section of the company's balance sheet. It is a section that…

Q: Cash dividends decrease the assels and decrease the retained earnings ofa corporation. OTrue O False

A: The shareholders of the business gets the share of profits in the form of dividend. The dividend can…

Q: The stockholders' equity will be reduced by all of the following except a.dividends b.expenses…

A: (a) Dividends: This option is incorrect because payment of dividends reduce the balance of Retained…

Q: True or False? The Statement of Stockholders' Equity shows how the balance of each equity account…

A: The statement of shareholder's equity is one of the financial statements of the business.

Q: The gross increase in stockholder’s equity attributable to business activities are called: a)…

A: Stock holders equity = equity share capital + Reserves and surplus