Answered: Hi. Investment increase Stockholders'…

Hi. Investment increase Stockholders' Equity. Can you explain me why? How does it relate to Stockholders' Equity since it is classified as an assets?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Investment increase Stockholders' Equity. Can you explain me why? How does it relate to Stockholders' Equity since it is classified as an assets?

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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