If Dividends Are Declared and Paid in the Same Accounting

question 26

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.

---

Definitions:

Fraud

Is a deliberate deception to secure unfair or unlawful gain, often financial.

Leader Behaviors

Actions and mannerisms exhibited by leaders that influence their effectiveness in guiding and motivating followers.

Adaptive Leadership

A leadership approach that encourages leaders to adapt to changing environments and challenges by experimenting and learning from mistakes.

Adaptive Leader Behaviors

Actions by leaders that demonstrate flexibility and responsiveness to changing circumstances, enabling them to effectively manage and lead through uncertainty.