Which of the Following Items Would Not Reduce Retained Earnings

question 108

Multiple Choice

Which of the following items would not reduce retained earnings?

• A)A common stock dividend.
• B)A preferred stock dividend.
• C)A cash dividend.
• D)Cash payment of a previously declared dividend.

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Definitions:

Obligated

Refers to being bound by a duty, contract, or sense of responsibility to perform a particular action or role.

Social Exchange Theory

A theoretical perspective, based on the principle of reinforcement, that assumes that people will likely choose actions that maximize rewards and minimize costs.

Exchange Network

A social structure that consists of individuals or entities sharing resources and services through a system of transactions.

Group Polarization

In group decision making, the tendency for group members to shift their opinions toward a position that is similar to but more extreme than the positions they held prior to group discussion; both the risky shift and the cautious shift are instances of group polarization.