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

Question

Quizplus · Accepted Answer

Declaration and payment of a dividend to the shareholders would decrease the company's retained earnings (part of stockholders' equity) and the cash balance (an asset).

Which of the Following Transactions Would Decrease an Asset and Decrease