All of the following transactions increase shareholders' equity except:

Name: All of the following transactions increase shareholders' equity except:
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Question

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The declaration of a cash dividend reduces shareholders' equity by distributing a portion of profits to shareholders. The issuance of common shares and convertible preferred shares increases shareholders' equity by bringing in new capital. Profitable operations also increase shareholders' equity by increasing retained earnings.

All of the Following Transactions Increase Shareholders' Equity Except