Summary Stockholders' equity will be reduced by all of the following except that the dollar amount

StockholdersStockholders' equity will be reduced by all of the following except that the dollar amount of the debits equals the dollar amount of the credits in the ledger meansAnswer & ExplanationTo determine which transactions or events do not reduce stockholders' equity, let's consider the typical components and transactions that affect it:1.Dividends Declared: When a company declares dividends, it reduces retained earnings, which is a component of stockholders' equity.2.Net Losses: If a company incurs losses, this will decrease retained earnings and thus reduce stockholders' equity.3.Treasury Stock Purchases: When a company buys back its own shares, it reduces stockholders' equity because treasury stock is recorded as a contra-equity account.4.Issuance of New Shares: This increases stockholders' equity by increasing common or preferred stock and additional paid-in capital accounts.Given these poi