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The amount of owners equity in a business is not affected by: Multiple Choice The percentage of total assets held in cash. T
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Answer #1

Ans. Option 1st

Explanation: Cash is a part of assets which would not affect the stockholders (owners) equity section of the balance sheet.

*Investment in business by owner is just like capital which increases the owners equity.

*Dividends paid to stockholders decreases the owner's equity.

* Profitability (net income) is added to the beginning balance of retained earnings which increases owners equity.

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