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Manal Elkhoshkhany
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Which of the following will decrease the amount of Total stockholders&

Customer Question

Which of the following will decrease the amount of Total stockholders’ equity?
A. Purchase of treasury stock
B. Stock split
C. Stock dividend
D. Repayment of bond principal
Submitted: 2 years ago.
Category: Finance
Expert:  Tax.appeal.168 replied 2 years ago.
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To answer your question, (C) Stock dividend is the correct answer.
Why is the C the answer, you ask? Because the total amount of cash distributed by cash dividends is charged against, and reduces, the retained earnings of the company, and thus decreases stockholders' equity.
Expert:  Manal Elkhoshkhany replied 2 years ago.
The correct choice is A "Purchase of Treasury Stock"Thank you