Which of the Following Will Not Cause a Change in the Stockholders

question 134

Multiple Choice

Which of the following will not cause a change in the stockholders' equity of a business?

• A)An increase in prepaid expenses.
• B)An increase in retained earnings.
• C)The sale of common stock.
• D)The declaration and payment of dividends.

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Definitions:

Simplify

To make something easier to understand or apply by reducing complexity.

Collect Like Terms

The process of simplifying an algebraic expression by combining terms that have the same variables.

Operation Indicated

A mathematical operation suggested by a problem or equation, such as addition, subtraction, multiplication, or division.

Collect Like Terms

In algebra, the process of combining terms that have the same variable parts into a single term.