Which of the following would decrease stockholders' equity?
A)Stock issued for cash.
B)Repayment of notes payable.
C)Land purchased for cash.
D)Dividends paid to owners.

Question

Quizplus · Accepted Answer

Dividends paid to owners decrease retained earnings, which is a component of stockholders' equity. All other choices would increase stockholders' equity (stock issued for cash would increase paid-in capital, repayment of notes payable would decrease liabilities, and land purchased for cash would increase assets).

Which of the Following Would Decrease Stockholders' Equity