Which of the following transactions would not result in a decrease to retained earnings?
A) Declaration of a stock dividend
B) Correction of an error in which depreciation expense was understated in a prior period
C) Reacquisition of shares for less than the original issue price
D) Incurrence of a net loss for the period

Question

Quizplus · Accepted Answer

Reacquisition of shares for less than the original issue price affects treasury stock and additional paid-in capital but does not directly impact retained earnings.

Which of the Following Transactions Would Not Result in a Decrease