Which of the Following Transactions Causes a Decrease in Stockholders

question 51

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:

Energy

The capacity to do work, which comes in various forms such as kinetic, potential, thermal, electrical, chemical, nuclear, and others, and can be transformed from one form to another.

Commodities Price Index

An index that measures changes in the general price level of commodities traded in the global markets, like metals, food, and energy.

Productive Resources

Includes the inputs used in the production of goods and services, such as labor, capital, and natural resources.

Per Capita Water Use

The average amount of water consumed per person in a given area or community within a specified time period.