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a. Purchase of land from the proceeds of a bank loan. b. Dividends to stockholders. c. Net loss. d. Investments of cash by stockholders.
a. Purchase of Land from the proceeds of a bank loan - increase in Liability
Option 'a'.
a)
rest are directly or indirectly related with equity
Option A
A.
Increases both assets and liabilities and doesn't affect equity.
A
a
(A) Option is right. Because all others effect the stockholders equity, option A only effects the liability
purchase of the land from a bank loan
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