Which One of the Following Will Decrease the Value of the Owners

question 25

Multiple Choice

Which one of the following will decrease the value of the owners' equity on a statement of financial position?

• A) Dividends paid during the year in an amount which exceeds the net income for the year.
• B) The sale of new shares of stock.
• C) The purchase of new equipment using the proceeds of a bank loan.
• D) The sale of inventory at a profit.
• E) A decrease in the amount of long-term debt owed by a firm.

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