Which of the Following Transactions Decreases Earnings Per Share

question 51

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.Issuing additional shares of common stock via a stock dividend increases the number of common shares outstanding and therefore decreases earnings per share.

---

Definitions:

Regulatory Molecules

Substances, such as hormones or neurotransmitters, that regulate various processes in the body, including growth, metabolism, and cellular function.

Inhibits

To hinder, limit, or prevent a process or action, often used in the context of biological and chemical reactions.

One-Way Flow

A system or process in which a substance or object moves in a single direction without returning or recirculating.

Energy

The capacity to do work or cause physical change; energy, potential or kinetic, exists in many forms such as chemical, electrical, and mechanical.