Ask Question
BusinessBusiness
Today, 15:02

Investments by stockholders have what effect on the accounting equation? A. Assets increase and liabilities increase. B. Expenses increase and liabilities increase. C. Assets increase and revenues increase. D. Assets increase and stockholders' equity increases.

+5
Answers (1)
  1. Today, 15:32
    0
    D. Assets increase and stockholders' equity increases

    Explanation:

    When a stockholoder invests in the company the company has increase its Assets by the amount or fair value of the investment made by the stockholder.

    Consequently, the company should also recognize and increase in the stockholders' equity since it is a stockholder that is adding value ("equity") by investing in the company.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Investments by stockholders have what effect on the accounting equation? A. Assets increase and liabilities increase. B. Expenses increase ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Patrick sues Derek for negligence. During the trial, it is determined that Patrick's negligence was 40 percent responsible for his injury, and Derek's negligence was 60 percent responsible. Patrick's losses total $10,000.
Answers (1)
What is urban economics
Answers (1)
Which of the following is a common long-term goal? A. Going on vacation B. Giving a birthday gift C. Saving for retirement D. Passing a test in school
Answers (1)
Suppose the equilibrium price of a pound of bacon is $3.50. The government decides that people have a right to a pound of bacon at an affordable price. To protect this new right, the government passes a law setting a maximum price of $1.50 for bacon.
Answers (1)
Which of the following is an example of an organizational source of resistance to change? A) limited focus of changeB) securityC) fear of the unknownD) selective information processingE) habit
Answers (1)
New Questions in Business
While shopping in a local supermarket, Jolene Partin came upon an aisle display of cookies and had to have some-immediately. By the time she got to the checkout counter with the rest of her selections, all the cookies were gone.
Answers (1)
When multiple performance obligations exists in a contract, they should be accounted for as a single performance obligation when the product is distinct within the contract. determination cannot be made.
Answers (1)
Phillips Electric makes LED lights. To move to market quickly, they did not worry about quality before shipping. They allowed easy returns and generous refunds during this period.
Answers (1)
Investments by stockholders have what effect on the accounting equation? A. Assets increase and liabilities increase. B. Expenses increase and liabilities increase. C. Assets increase and revenues increase. D.
Answers (1)
You buy one Home Depot June $60 call contract and one June $60 put contract. The call premium is $5 and the put premium is $3. At expiration, you break even if the stock price is equal to
Answers (1)
Home » Business » Investments by stockholders have what effect on the accounting equation? A. Assets increase and liabilities increase. B. Expenses increase and liabilities increase. C. Assets increase and revenues increase. D.
Sign Up Forgot Password?