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AreaEach of the following transactions affects stockholders equity except a . the purchase of land with cash. b . a sale on account. c .
AreaEach of the following transactions affects stockholders equity except
a the purchase of land with cash.
b a sale on account.
c an investment of cash in exchange for common stock.
d a payment of dividends. Clayton Company purchased a new coffee maker in the amount of $ Clayton paid $ down and will pay the remainder in days. What effect does this transaction have on the accounting equation?
a $ net decrease in assets and $ decrease in liabilities
b $ net increase in assets and $ increase in liabilities
c $ net increase in assets and $ increase in liabilities
d $ net increase in assets and $ increase in liabilities Which of the following statements is not true?
a Stockholders equity is increased by stockholders investments and is decreased by dividends.
b The two sides of the accounting equation are always equal.
c Expenses increase stockholders equity.
d The effect of every transaction is an increase or a decrease in one or more of the accounting equation elements.Question Content Area
The accounting equation may be expressed as
a Assets Expenses Liabilities
b Assets Revenues Liabilities
c Assets Liabilities Stockholders' Equity
d Assets Liabilities Stockholders' Equity
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