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

Question

Quizplus · Accepted Answer

Purchasing treasury stock reduces the amount of outstanding shares and thereby decreases the total stockholders' equity. The other options may have some impact on the composition of stockholders' equity, but they do not directly decrease the total amount. Stock split increases the number of outstanding shares and lowers the per-share price, but the total value of equity remains the same. Stock dividend distributes additional shares to existing shareholders, again without decreasing the total equity. Repayment of bond principal reduces liabilities, but this does not affect the equity.

Which of the Following Will Decrease the Amount of Total