Question

art 1 pre: 0.67 of 2 pts E1-22 (book/static) 7 of 11 (7 complete) HW Scor of $ borrowing money ountain Drycleaners started 2018 with toti 318, Mountain's total assets stood at $12, Cequirements Did the stockholders' equity of Mountain . Identify the four possible reasons that st dividend payment 192 issuance of common stock lecre Requirement 1. Did the stockholders' equit By how much? net loss paying a liability purchasing assets for cash purchasing assets on account The stockholders' equity decreased Requirement 2. Identify the four possibler ange Stockholders' equity can increase through: and/or V. Stockholders' equity can decrease through and/or Click to select your answer(s) and then click Check Answer All parts showing Clear All Check Ans 3 @ 1891 AM

Answer 1

Stockholders Equity can increase through

Issuance of common stock

And/or Net profit

Can decrease through

Dividend payment

And/or net loss

As net income or loss belongs to the stockholders

Purchasing assets or paying liability will not affect Equity