If Dividends Are Declared and Paid in the Same Accounting

question 8

Multiple Choice

If dividends are declared and paid in the same accounting period,what is the net effect on the accounting equation?

• A)a decrease in Retained Earnings and an increase in Expenses
• B)a decrease in Cash and an increase Expenses
• C)a decrease in Cash and an increase in Retained Earnings
• D)a decrease in Cash and a decrease in Retained Earnings

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Definitions:

External Acquisition

External acquisition refers to the process by which a company or organization purchases or acquires another company, assets, or significant shares from outside its current operations to expand its business.

Relevant Expertise

Specialized knowledge or skills that are directly applicable to a specific task or situation.

Joint Ventures

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Learning Organization

An organization that facilitates the learning of its members and continuously transforms itself.