The Net Effects on the Corporation of the Declaration and Payment

question 106

Multiple Choice

The net effects on the corporation of the declaration and payment of a cash dividend are to

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

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Definitions:

Grading And Excavation

The process of moving earth, soil, and rock to create a level base for construction projects or to achieve the desired landscaping design.

Expansion Project

An initiative undertaken by a company to increase its production or service capacity, often requiring significant capital investment.

Operating Cash Flow

Cash generated from a company's normal business operations, indicating its ability to generate sufficient positive cash flow to maintain and grow operations.