How Does the Declaration and Receipt of a Cash Dividend

question 99

Multiple Choice

How does the declaration and receipt of a cash dividend on a long-term Investment in Available-for-Sale Securities affect the balance sheet?

• A)increases assets and increases paid-in-capital
• B)increases assets and decreases stockholders' equity
• C)increases assets and increases retained earnings
• D)has no effect on assets or total stockholders' equity

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