Which of the Following Transactions Would NOT Result in an Increase

question 43

Multiple Choice

Which of the following transactions would NOT result in an increase to retained earnings?

• A) correction of an error in which expenses were overstated in a previous year
• B) issuance of a 3-for-1 stock split
• C) retrospective application of a new accounting policy that results in higher net income in the previous year.
• D) earning of net income for the period

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Definitions:

Sexual Activity

Actions involving sexual relations between individuals, including but not limited to intercourse.

Experimentation

The process of trying out new ideas, methods, or activities to discover something unknown or test a hypothesis.

Perpetuate Homophobia

Continuously promote or sustain prejudice and discrimination against homosexual individuals.