Which of the Following Transactions Decreases Retained Earnings

question 158

Multiple Choice

Which of the following transactions decreases retained earnings?

• A) A property dividend.
• B) A stock dividend.
• C) A cash dividend.
• D) All of these answer choices are correct.

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Definitions:

Unit Variable Costs

The costs that vary directly with the level of production or service, measured on a per unit basis.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales volume, encompassing items such as rent, salaries, and insurance premiums.

Variable Cost

Costs that change in proportion to the level of activity or volume of production.

Break-Even Point

The level of production or sales at which total costs equal total revenue, resulting in no net profit or loss.