Which Transaction Decreases Stockholders' Equity

question 57

Multiple Choice

Which transaction decreases stockholders' equity?

• A)sale of common stock
• B)cash purchase of land
• C)total revenues greater than total expenses for the period
• D)total expenses greater than total revenues for the period

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Definitions:

Variable Input

An input in the production process that can be adjusted in the short run to change the level of output.

Total Output

The total quantity of goods and services produced by an economy, a sector, or a company during a given period.

MRP

The additional revenue a firm generates by employing one more unit of input, such as labor or capital, in the production process.

Labor Demand Curve

A graphical representation showing the relationship between the quantity of labor demanded by firms and the wage rate.