Which of the following will decrease total equity? An increase in:
A)common stock material.
B)net income.
C)dividends paid.
D)interest expense.

Name: Which of the following will decrease total equity? An increase in: A)common stock material. B)net income. C)dividends paid. D)interest expense.
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Question

Quizplus · Accepted Answer

Dividends paid represents a distribution of earnings to shareholders and reduces the amount of retained earnings, which in turn decreases the total equity.

Which of the Following Will Decrease Total Equity? an Increase