Which of the Following Transactions Will Not Change a Company's

question 73

Multiple Choice

Which of the following transactions will not change a company's total stockholders' equity?

• A)Reporting of net income.
• B)Issuing stock to stockholders in exchange for cash.
• C)The declaration of a cash dividend.
• D)The payment of a previously declared cash dividend.

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Definitions:

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may not coincide with the calendar year.

Assessed

The determination of the value of a property or income by an official authority for taxation or pricing purposes.

Property Taxes

Taxes levied by local governments based on the assessed value of real estate property owned by individuals or businesses.

Municipal Services

Public amenities and services provided by a city or town government such as water supply, sewage, sanitation, public transportation, and parks.