How many of these will decrease a corporation's retained earnings? ∙ a stock split
∙ paying a stock dividend
∙ paying a cash dividend
∙ buying treasury stock

Question

Quizplus · Accepted Answer

Paying a stock dividend and paying a cash dividend decrease a corporation's retained earnings. A stock split does not affect retained earnings because it simply increases the number of shares while proportionally decreasing the share price. Buying treasury stock affects the treasury stock account and cash but does not directly decrease retained earnings.

How Many of These Will Decrease a Corporation's Retained Earnings