Which of the following will decrease the amount of Total stockholders' equity?

Question

Quizplus · Accepted Answer

When a company pays cash dividends to its shareholders, the total stockholders' equity decreases as the company's assets decrease, and the amount paid as dividends is subtracted from retained earnings. Stock split and stock dividend do not affect the total amount of equity, but rather the number of shares outstanding. Repayment of bond principal does not affect equity, as it involves reducing the company's liabilities.

Which of the Following Will Decrease the Amount of Total