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:

Automatic Process

Tasks or thought processes that occur with little to no conscious awareness or effort, often due to the repetition of these tasks.

Temporal Lobe

A region of the cerebral cortex located beneath the lateral fissure on both cerebral hemispheres of the mammalian brain, involved in processing auditory information and encoding memory.

Political Science

The study of politics, government systems, and political behavior, encompassing both understanding of political theories and the practical workings of political institutions.

Pineal Gland

A small endocrine gland in the brain that produces melatonin, a hormone that affects the modulation of wake/sleep patterns and seasonal functions.