Can you have an increase in assets and an increase in stockholders equity in a financial statement?
The accounting equation shows that increases in assets increase owners equity.This can come from sales that increase cash or accounts receivable, or contributed capital from the owner or other investors in the form of cash or other assets.The accounting equation also shows that increases in owners equity doesn't occur from purchasing or financing assets. I hope this helps!
Answered by Alexander H. -
Related Questions
-
What is the increase of value of an asset?
Appreciation is the word used to describe an increase in the ...
-
Achieving appropriate developmental assets ensures that situa...
-
If debt/equity ratio increases does debt/asset ratio also increase?
A measure of a company's financial leverage calculated by div...
-
Does earning revenue on account increase assets?
Asset accounts are increased by debits and decreased by credi...
-
The business purchases a computer, on credit, for $2500. Asse...
Comments