Question

What decreases stockholders equity by using up assets or increasing liabilities in to deliver goods or services to customers?

Answer 1

Expenses

Step-by-step explanation:

Expenses are done by every organization which delivers product to customers or any kind of services.

Though these transactions of providing products or service, generates revenue for the organization but there are certain expenses attached in relation to deliver such products or services.

These expense decrease the amount of revenue attached or in other form decreases the retained earnings which belong to the equity stockholders as their share of profit.

Expenses like, cost of manufacturing, warehousing, labor, transportation etc: are some examples.