The stockholders equity in the firms net assets is

This preview shows page 7 - 9 out of 9 pages.

the stockholder's equity in the firm's net assets is increased by each. D. retained earnings and the amount of potential future dividends is reduced by each.
Saved 16) Factors that usually affect retained earnings directly include: 1 Point
stock dividends and gains or losses from the sale of treasury stock. net income or loss, and the issuance of stock at an amount in excess of par value. Saved 17) In comparison to the stockholders' equity section of a corporation's balance sheet, owners' equity of a proprietorship or partnership: 1 Point normally does not make a distinction between invested capital and retained earnings. normally uses "Capital" accounts for each individual owner, rather than a "Retained Earnings" account for all of the stockholders. normally uses a "Drawings" account for each individual owner, rather than a "Dividends" account for all of the stockholders. all of these Saved 18) The declaration of a cash dividend by the directors results in: 1 Point
a decrease in net income and an increase in current liabilities.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture