Answer:
a. will increase because net income has occurred.
Explanation:
Balance sheet is the financial statement of any accounting year. This statement is used for both financial and accounting modeling. It show the asset and liability of company. Stockholder´s equity is the amount of assets which is available with the owner after all the debts and dividend have been paid.
As total debit exceed total credit in the balance sheet, which indicate net income have increased and profit occured to the company during the specified period of time. Net income increases the stockholders equity as revenue and gain cause stock holder´s equity to increase.
