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To debit Shareholder's Capital means which of the following? A. Decrease company revenues B. Increase its position C. Stabilize revenues D. Decrease its position​

Respuesta :

Answer: D. Decrease its position​

Explanation:

Shareholder capital works much like a liability account in that it increases when credited and decreases when debited.

When a company debits shareholder capital, they are decreasing the number of shares that the company has outstanding. This is known as decreasing shareholder position.

They can do this through share repurchases where the company buys back shares from its shareholders or they can cancel shares.