If a company has an increase in total revenues of $10,000, which of the following is possible? a. Total assets increase by $10,000.b. Total liabilities increase by $10,000.c. Total stockholders’ equity decreases by $10,000.d. Either b. or c. is correct.

If a company has an increase in total revenues of $10,000, which of the following is possible? a. Total assets increase by $10,000.b. Total liabilities increase by $10,000.c. Total stockholders’ equity decreases by $10,000.d. Either b. or c. is correct.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter1: The Role Of Accounting In Business

Section: Chapter Questions

Problem 4SEQ: If total assets are $20,000 and total liabilities are $12,000, the amount of stockholders’ equity...

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Question

If a company has an increase in total revenues of $10,000, which of the following is possible?
a. Total assets increase by $10,000.
b. Total liabilities increase by $10,000.
c. Total stockholders’ equity decreases by $10,000.
d. Either b. or c. is correct.

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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