Which transaction increases stockholders' equity? A. payment of operating expenses B. expenses greater than revenues for the period C. dividends that are declared and paid D. sale of common stoc

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6 February, 14:17

Which transaction increases stockholders' equity? A. payment of operating expenses B. expenses greater than revenues for the period C. dividends that are declared and paid D. sale of common stoc

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Celeste Tran · Answer 1

The correct answer is letter "D": sale of common stock.

Explanation:

Stockholders' equity is the equity held by the shareholders in a company. It is determined by the corporation by subtracting its total liabilities from its total assets. The sale or issue of the common stock increases that amount. The result is listed in the firm's Balance Sheet.