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 $$3,000.$ Clayton paid $$1,000$ down and will pay the remainder in $60$ days. What effect does this transaction have on the accounting equation?

a$.$ $$1,000$ net decrease in assets and $$1,000$ decrease in liabilities

b$.$ $$2,000$ net increase in assets and $$2,000$ increase in liabilities

c$.$ $$3,000$ net increase in assets and $$3,000$ increase in liabilities

d$.$ $$3,000$ net increase in assets and $$2,000$ 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