Equity is the Amount of a company's capital is owned by the shareholders. In sole proprietorship and partnership, it is simply called capital. While, the equity of a corporation is known as stockholders equity. Which of the following options either will increase or decrease the equity?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 8MC: The total amount of cash and other assets received by a corporation from the stockholders in...
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Equity is the Amount of a company's capital which
is owned by the shareholders. In sole
proprietorship and partnership, it is simply called
capital. While, the equity of a corporation is known
as stockholders equity. Which of the following
options either will increase or decrease the equity?
O a. Cash, Accounts payable, supplies
O b. Accounts payable, Accounts receivable,
supplies
O C. Accounts payable, bank overdraft,
outstanding expenses
O d. Retained earnings, dividend, drawings
Transcribed Image Text:Equity is the Amount of a company's capital which is owned by the shareholders. In sole proprietorship and partnership, it is simply called capital. While, the equity of a corporation is known as stockholders equity. Which of the following options either will increase or decrease the equity? O a. Cash, Accounts payable, supplies O b. Accounts payable, Accounts receivable, supplies O C. Accounts payable, bank overdraft, outstanding expenses O d. Retained earnings, dividend, drawings
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