Retained earnings might be reduced by each of the following except:
A) stock split not effected in the form of a stock dividend.
B) property dividend.
C) treasury stock.
D) cash dividend.

Question

Quizplus · Accepted Answer

A stock split not effected in the form of a stock dividend would not affect retained earnings because it does not involve a distribution of assets. The other options (B, C, D) involve some form of distribution of assets, which would decrease retained earnings.

Retained Earnings Might Be Reduced by Each of the Following