Which of the Following Will Decrease the Balance in Retained

question 152

Multiple Choice

Which of the following will decrease the balance in Retained earnings?

• A) Repayment of bond principal
• B) Stock split
• C) Stock dividend
• D) Purchase of treasury stock

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Definitions:

Contribution Format

An income statement format that separates fixed costs from variable costs, showing the contribution margin of sales over variable costs.

External Reporting

The process of preparing and presenting financial and other information to parties outside the organization.

Traditional Format

In accounting, it refers to the conventional way of reporting income statements, segmenting costs into categories like cost of goods sold, operating expenses.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including raw materials, labor, and manufacturing overhead.