Which of the Following Transactions Will Decrease a Corporation's Retained

question 102

Multiple Choice

Which of the following transactions will decrease a corporation's retained earnings?

• A) The corporation declares and pays a $2 per share cash dividend.
• B) The company completes a 2 for 1 stock split.
• C) The company pays a 20% stock dividend.
• D) Both A and C

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Definitions:

Linguistic Intergroup Bias

A tendency to describe stereotypic behaviors (positive ingroup and negative outgroup) in abstractterms while describing counterstereotypic behaviors (negative ingroup and positive outgroup) inconcrete terms.

Counterstereotypic Behaviors

Actions or behaviors that go against common stereotypes or societal expectations associated with a particular group.

Stereotypic Behaviors

Repetitive or ritualistic movements, postures, or utterances, often indicative of anxiety, stress, or developmental conditions.

Outgroup Homogeneity Effect

The tendency to view members of an outgroup as more similar to each other than members of one's ingroup.