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.

Question

Quizplus · Accepted Answer

A stock dividend increases the number of shares outstanding, which decreases earnings per share since the same earnings are now spread over more shares.

Which of the Following Transactions Decreases Earnings Per Share