Problem: Which of the following statements about stockholders' equity is not correct?  a. Stockholders’ equity is the shareholders’ residual interest in the company resulting from the difference in assets and liabilities. b. Stockholders’ equity accounts are increased with credits. c. Stockholders’ equity results only from contributions of the owners. d. The purchase of land for cash has no effect on stockholders’ equity.

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Problem Details

Which of the following statements about stockholders' equity is not correct? 

a. Stockholders’ equity is the shareholders’ residual interest in the company resulting from the difference in assets and liabilities.

b. Stockholders’ equity accounts are increased with credits.

c. Stockholders’ equity results only from contributions of the owners.

d. The purchase of land for cash has no effect on stockholders’ equity.

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