Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Which of the following transactions would have no impact on stockholders' equity?

a. Purchase of land from the proceeds of a bank loan.

b. Dividends to stockholders.

c. Net loss.

d. Investments of cash by stockholders.

user-image
Question added by Mohamed Hakeem Meerashahib , Branch Manager , Sri Lanka State Trading (General) Corporation
Date Posted: 2016/02/17
Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

A. purchase of land from  the proceeds of a bank loan

omer bin mohammed billajdam aljaidi
by omer bin mohammed billajdam aljaidi , Accountant , AL WAHEED

a purchase of land is a correct answer

Najam Ali
by Najam Ali , Senior Accountant , YYT Food Corporation LLC (Previously Known as Bukhowa Investments LLC)

Option A is correct as purchase of land from proceeds of bank loan would not impact on stock holder's equity

Shaikh Muhammad  Yousuf
by Shaikh Muhammad Yousuf , Manager Accounts , Al Wahdania Group of Companies

Option (a) is correct. It will affect non current assets and liabilities; not equity.

seyad arshad
by seyad arshad , DATA ENTRY OPERATOR , MOHAMED SATHAK POLYTECHNIC COLLEGE

d. Investments of cash by stockholders.

More Questions Like This