Which of the following would cause a decrease in stockholders' equity?(A) Purchase of equipment(B) Payment of cash dividend(C) Declaring cash dividend(D) Issuing stock certificate for stock dividendsAnswerABOOUD Which of the following would cause a decrease in stockholders' equity?(A) Purchase of equipment(B) Payment of cash dividend(C) Declaring cash dividend(D) Issuing stock certificate for stock dividendsAnswerABOOUD

The shareholder's equity section is a section of the company's balance sheet. It is a section that…

Answered: Which of the following would cause a…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 14MCQ

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Similar questions

Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.
Treasury Stock Refer to the information for Heitman Company above. Required: 1. How will this transaction affect stockholders equity? How will this transaction affect net income?
Which of the following decreases total equity? A. A stock split B. Recording Revenue C. The purchase of Treasury Stock D. Issuance of Convertible preferred stock
Which of the following will reduce Retained Earnings? a. Declaration of a stock dividendb. Payment of a cash dividendc. Profit for the periodd. None of these
23.Which of the following would not be found on the statement of changes in stockholders’ equity? a. Net loss b. Proceeds from the sale of bonds c. Sale of common stock d. Payment of cash dividends
Which of the following transactions will increase thereturn on equity?a. Declare and issue a stock dividend.b. Split the stock 2-for-1.c. Repurchase the company’s stock.d. None of the above.
Declaration of cash dividends will … a. Increase the retained earnings b. Increase the stockholders’ equity c. Decrease the retained earnings d. Decrease the total equity Entries for dividends are required on the … a. Declaration date and payment date b. Declaration date and record date c. Record date and declaration date d. Payment date and record date
When stock is purchased with cash and held in treasury,what is the impact on the balance sheet equation?a. No change—the reduction of the asset Cash is offsetwith the addition of the asset Treasury Stock.b. Assets decrease and stockholders’ equityincreases.c. Assets increase and stockholders’ equitydecreases.d. Assets decrease and stockholders’ equitydecreases.
Which statement cash of flows shows the inflows and outflows of the issue and repurchase of stock? A. Fiancing B. Operating C. Investing D. None of the above
Which of the following balance sheet accounts will be affected by a stock dividend but not by a stock split? A. Common stock B. Dividends-in-arrears C. Cash D. Retained earnings
What is the effect of purchasing treasury stock on a company’s earnings per share and return on equity, respectively? (Enter 1, 2, 3, or 4 that represents the correct answer.) No effect and no effect Decrease and decrease Increase and increase Increase and decrease

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Which of the following would cause a decrease in stockholders' equity? (A) Purchase of equipment (B) Payment of cash dividend (C) Declaring cash dividend (D) Issuing stock certificate for stock dividends Answer A B C D