Which of the following transactions does not result in an increase in stockholders' equity?
A)Sale of no-par common stock for cash.
B)Declaration and distribution of a common stock dividend.
C)Sale of preferred stock for cash at par value.
D)Sale of treasury stock for cash at a price less than its cost.

Question

Quizplus · Accepted Answer

The declaration and distribution of a common stock dividend do not increase stockholders' equity. Instead, it redistributes equity from retained earnings to common stock but does not increase the total amount of stockholders' equity.

Which of the Following Transactions Does Not Result in an Increase