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

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

A purchase of equipment on account.

The collection of an account s receivable.

A sale of inventory at a profit.

A payment on a loan.

The declaration of a stock dividend.

Expert Solution

Answer : A sale of inventory at a profit.

Explanation :

A sale of inventory at a profit leads to increase in net profit and in turn it increases the retained earnings.

Retained earnings is grouped under shareholders equity

jeff jeffy answered 2 years ago

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

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