Which of the Following Transactions Causes a Decrease in Stockholders

question 81

Multiple Choice

Which of the following transactions causes a decrease in stockholders' equity?

• A)Pay dividends to stockholders.
• B)Obtain cash by borrowing from a local bank.
• C)Provide services to customers on account.
• D)Purchase office equipment for cash.

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Definitions:

Conventional Crowd

A collection of individuals who come together for a specific event or purpose, often characterized by standardized behaviors.

Casual Crowd

A temporary gathering of individuals drawn together by a specific event or interest without a clear organizational structure.

Psychosocial Theory

A framework that explores the interaction between psychological developments and social environments across an individual's lifespan.

Emergent Norm Theory

A theory in sociology suggesting that norms and behaviors in crowds and social groups emerge spontaneously and are negotiated among members, rather than being inherent or fixed.