Which of the following transactions is most likely to be recognized on a firm's statement of changes in equity? a) buying a machine from an equipment dealer. b) declaring a dividend on common shares. c) investing cash in an exchange-traded fund.

The answer is: B) Declaring a dividend on common shares.

Explanation:

A company´s statement of changes in equity shows the change in shareholder's equity throughout an accounting period. The main elements of these reports are:

Dividend payments must be deducted from shareholder equity because they are a distribution of wealth to the shareholders.

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answer; be sure that the information on file is correct;