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How do expenses impact the stockholders' equity of a company? A) Expenses decrease stockholders' equity. B) Expenses increase stockholders' equity. C) Expenses do not impact stockholders' equity. 12. Greenstreet CPAs paid its employees for the hours worked in #11 above. This transaction decreases which account in Greenstreet CPAs' accounting records? A) Salaries expense B) Retained earnings C) Accounts receivable D) Salaries payable