Which of the Following Transactions Decreases Earnings Per Share

question 51

Multiple Choice

Which of the following transactions decreases earnings per share?

• A)Declaring cash dividends payable to the common stockholders.
• B)Purchasing treasury stock.
• C)The accrual of revenue.
• D)Declaring and distributing a 10% common stock dividenD.Issuing additional shares of common stock via a stock dividend increases the number of common shares outstanding and therefore decreases earnings per share.

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Definitions:

Conscious Experience

The subjective awareness of one's own thoughts, feelings, and surroundings, often contrasted with unconscious processes.

Physiological Response

Biological reactions or changes in the body prompted by stimuli or external factors.

Expressive Responses

The outward expressions or reactions to emotions, which can include facial expressions, gestures, and vocal tones.

Spillover Effect

The phenomenon where an occurrence in one domain of an individual's life affects another domain or area, often seen in emotional or behavioral responses.