Which transaction decreases stockholders' equity?
A)sale of common stock
B)cash purchase of land
C)total revenues greater than total expenses for the period
D)total expenses greater than total revenues for the period

Question

Quizplus · Accepted Answer

Total expenses greater than total revenues for the period would result in a net loss, which would decrease stockholders' equity. Choices A and B would increase stockholders' equity as they represent an increase in assets or liabilities. Choice C would result in net income, which would increase stockholders' equity.

Which Transaction Decreases Stockholders' Equity