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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.

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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.

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