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- By generating GAAP earnings and not paying them as dividends - the retained earnings will increase. - By selling and increasing outstanding number of shares - the paid in capital will increase.
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What items affect stockholders equity?
Stockholders Equity is increase by profits and the issuance of new stock. Stockholders Equity is reduced by losses, the payment of dividends and the purchase of Treasury Stock (the company's re-purchase of its own stock).
Does expenses increase stockholders' equity?
no
What affects stockholders equity?
increase retained earnings
Who are stockholders in a corporation?
Stockholders are people who have purchased (or have been granted) shares of equity in the ownership of the company.
How a company can increase its Customer equity?
how company increase custmer equity
Do Revenues represent decreases in stockholders' equity?
no, they represent increases in stockholders' equity.
How do cash dividends affect stockholders equity and how would a stock dividend affect stockholders equity?
They do not.
What is the appropriate order for a company's chart of accounts?
assets, liabilities, stockholders' equity, revenues, expense
What is the difference between a bondholder and a stockholder?
Bondholders own a share of the debt of a company. Stockholders own a share of the equity of a company.
Dividends is what type of account?
Dividends are classified as stockholders' equity. They reduce stockholders' equity so they can also be called a contra equity account.
If a company's return on equity is 10 percent its profit margin is 5 percent and its asset turnover is 1.57 what is it's equity multiplier?
EQUITY MULTIPLIER=Total Assets / Total Stockholders' Equity
What effect does the purchase of treasury stock have on total stockholders equity increase decrease or none stays the same?
decrease
