Which of the following transactions would decrease an asset and decrease stockholders' equity?
A)The payment of an account payable
B)The performance of a service for a client on account
C)The borrowing of money from the bank for thirty days
D)The declaration and payment of a dividend to the shareholders

Question

Quizplus · Accepted Answer

The declaration and payment of a dividend to shareholders decreases stockholders' equity which represents the ownership interest of shareholders. It also decreases cash which is an asset.

Which of the Following Transactions Would Decrease an Asset and Decrease