Question

Each of the following transactions will cause a decrease in stockholders' equity, except:

a. the sale of treasury stock at less than cost.
b. the declaration of a cash dividend.
c. a loss on the sale of a discontinued segment.
d. a loss from a foreign currency translation adjustme

Answer 1

The correct answer is d. a loss from a foreign currency translation adjustment. Stockholders' equity represents the ownership interest of shareholders in a company and is calculated as the difference between a company's assets and liabilities. Any decrease in stockholders' equity indicates a reduction in the value of the shareholders' ownership.

Step-by-step explanation:

The correct answer is d. a loss from a foreign currency translation adjustment.

Stockholders' equity represents the ownership interest of shareholders in a company and is calculated as the difference between a company's assets and liabilities. Any decrease in stockholders' equity indicates a reduction in the value of the shareholders' ownership.

Options a, b, and c all involve transactions that result in a decrease in stockholders' equity. However, a loss from a foreign currency translation adjustment does not affect stockholders' equity. It is a non-cash transaction that reflects the impact of changes in foreign exchange rates on financial statements. Any decrease in stockholders' equity indicates a reduction in the value of the shareholders' ownership.