How Does the Declaration of a Cash Dividend Affect the Accounting

question 122

Multiple Choice

How does the declaration of a cash dividend affect the accounting equation?

• A)increase to liabilities and a decrease to stockholders' equity
• B)increase to liabilities and a decrease to assets
• C)increase to assets and a decrease to liabilities
• D)increase to stockholders' equity and a decrease to assets

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Definitions:

Pesos

The currency unit of several countries in Latin America and the Philippines.

Bolivars

The currency of Venezuela, used as a medium of exchange within the country.