Which of the Following Actions Will Decrease the Amount of Total

question 26

Multiple Choice

Which of the following actions will decrease the amount of Total Stockholders' Equity?

• A) cash dividend declared
• B) stock split
• C) stock dividend declared
• D) repayment of bond principal

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Definitions:

Weighted Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all items available for sale.

Equivalent Units

A concept used in cost accounting to express the amount of materials, labor, and overhead costs associated with partially completed goods as if they were finished.

Weaving Department

A specialized division in a manufacturing facility where threads are interlaced to make textiles or fabric.

Weighted Average Method

A cost accounting method that averages all costs of inventory available for sale during the period and assigns the average cost to both ending inventory and cost of goods sold.