Question

Which of the following situations increases stockholders’ equity? A loan is taken from the bank Services are provided on account Supplies are purchased on account Utility bill will be paid next mont

Answer 1

ANSWER:

The correct is "services are provided on account". ​That is point-2.

Reasons:

point-1:

At the point when supplies are obtained on account, the buys and records payable increment. on pay explanation the impact of this exchange will be increment of procurement/costs. it will prompts decrease in net salary and consequent decrease in investor's value.

point-2:

At the point when administrations are given on account , the income and records receivable increment. on pay proclamation the impact of this exchange will be increment of income. it will prompted increment in net pay and ensuing increment in investors value.

point-3:

At the point when money is gotten from clients, the money record will increment and the records receivable will diminish . on wage articulation there won't be any impact of the exchange and in this manner there is no impact on the investors value.

point-4:

At the point when service bills are paid one month from now, the utility costs and records payable increment. on salary articulation the impact of this exchange will be increment of costs. it will prompt decrease in net pay and therefore decrease in investor's value.