Which of the Following Transactions Decreases Earnings Per Share

question 32

Multiple Choice

Which of the following transactions decreases earnings per share?

• A)Declaring cash dividends payable to the common stockholders.
• B)Purchasing treasury stock.
• C)The accrual of revenue.
• D)Declaring and distributing a 10% common stock dividend.

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Definitions:

Idle Capacity

Unused or unutilized production capacity within a business, often leading to inefficiency and increased costs.

Constrained Resource

A limited resource that restricts a company's ability to meet demand, such as limited machine time or labor hours.

Automated Factory

An automated factory utilizes advanced machinery and computer systems to perform tasks with minimal human intervention, increasing efficiency and production.

Porcelain Dip Bowl

A specific type of serving bowl made from porcelain, typically used for dipping sauces or small appetizers.