When a Dividend Has Been Declared but Not Yet Paid

question 10

Multiple Choice

When a dividend has been declared but not yet paid,

• A)assets will increase and stockholders' equity will decrease.
• B)assets will decrease and stockholders' equity will increase.
• C)no accounts will be affected until the dividend is paid.
• D)liabilities will increase and stockholders' equity will decrease.

---

Definitions:

Continue Operate

The decision for a business to keep running its operations despite facing challenges or not achieving expected results.

Loss

A decrease in money, resources, or value, often occurring when expenses exceed revenues in a business context or reflecting personal financial setbacks.

Price Range

The spectrum or extent between the highest and lowest prices of a commodity over a given period.

Shut Down Point

The point at which a company's revenue is exactly equal to its variable costs and it ceases operations to minimize losses.