Which one of the following will increase shareholders' equity, all else held constant?

A) A purchase of equipment on account.
B) The collection of an account s receivable.
C) A sale of inventory at a profit.
D) A payment on a loan.
E) The declaration of a stock dividend.

Question

Angelica Culaway · Accepted Answer

Final Answer : C, Explanation :  A sale of inventory at a profit increases shareholders' equity because the profit from the sale increases retained earnings, a component of shareholders' equity.

Which one of the following will increase shareholders' equity, all else held constant?

A) A purchase of equipment on account.
B) The collection of an account s receivable.
C) A sale of inventory at a profit.
D) A payment on a loan.
E) The declaration of a stock dividend.

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Learning Objectives

Learning Objectives

Related questions

Which one of the following will increase shareholders' equity, all else held constant?A) A purchase of equipment on account.B) The collection of an account s receivable.C) A sale of inventory at a profit.D) A payment on a loan.E) The declaration of a stock dividend.

Definitions

Learning Objectives

Learning Objectives

Related questions

Which one of the following will increase shareholders' equity, all else held constant?

A) A purchase of equipment on account.
B) The collection of an account s receivable.
C) A sale of inventory at a profit.
D) A payment on a loan.
E) The declaration of a stock dividend.