Which of the following will decrease a company's retained earnings?

Question

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Declaring cash dividends decreases a company's retained earnings because it represents the distribution of earnings to shareholders. A) earning net income increases retained earnings, B) issuing shares at a price above par does not affect retained earnings, and C) buying treasury stock decreases common stock and paid-in capital, but does not directly affect retained earnings.

Which of the Following Will Decrease a Company's Retained Earnings