Which of the following transactions would NOT result in a decrease to retained earnings?
A) declaration and issuance of a stock dividend
B) incurrence of a net loss for the period
C) reacquisition of shares for less than the original issue price
D) correction of an error in which depreciation expense was understated in a prior period

Question

Quizplus · Accepted Answer

Reacquisition of shares for less than the original issue price affects treasury stock and additional paid-in capital but does not directly impact retained earnings.

Which of the Following Transactions Would NOT Result in a Decrease