Which of the Following Transactions Would Not Result in a Decrease

question 152

Multiple Choice

Which of the following transactions would not result in a decrease to retained earnings?

• A) Declaration of a stock dividend
• B) Correction of an error in which depreciation expense was understated in a prior period
• C) Reacquisition of shares for less than the original issue price
• D) Incurrence of a net loss for the period

---

Definitions:

Lean and Streamlined

Approaches or systems that are designed to maximize efficiency by eliminating waste and unnecessary processes.

Technology Control

The management and regulation of the development, application, and dissemination of technology.

Formal Authority

The power given to an individual or entity based on their position within an organization, enabling them to enforce rules and make decisions.

Bureaucracy

A systematic administrative system governing any large organization, characterized by fixed rules, hierarchy, and detailed procedures.