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Which of the following transactions will not affect a corporation's retained earnings? stock repurchase increase dividend...

Which of the following transactions will not affect a corporation's retained earnings?

stock repurchase

increase dividend payments

stock dividend

cut dividend payments

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Answer #1

Ans stock repurchase

Stock repurchases is the buy back of stock. It is made out of cash/ bank. On the other hand of the balance sheet it reduces stockholder's equity. It has no impact on retained earnings.

Dividend is paid out of Retained earnings and therefore affect retained earnings every time the dividend is paid.

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