Which of the Following Will Decrease a Company's Retained Earnings

question 34

Multiple Choice

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

• A)earning net income of $50,000 for the year
• B)issuing additional shares of common stock at a price above par
• C)buying additional shares of treasury stock
• D)declaring cash dividends of $0.50 per share

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Definitions:

Negative Message

Communication that conveys a refusal, rejection, or other unfavorable information in a diplomatic and considerate manner.

Clarity And Sensitivity

Clarity and sensitivity in communication involve expressing ideas clearly and straightforwardly while being mindful of and respectful towards the feelings and perspectives of others.

Emotional Investment

The process of putting personal feelings and emotions into relationships, projects, or activities, expecting emotional returns.

Indirect Approach

A method in communication or problem-solving that uses roundabout or non-direct pathways to achieve a goal or convey a message.