The Cumulative Effect of the Declaration and Payment of a Cash

question 341

Multiple Choice

The cumulative effect of the declaration and payment of a cash dividend on a company's statement of financial position is to

• A) decrease current liabilities and equity.
• B) increase total assets and equity.
• C) increase current liabilities and equity.
• D) decrease equity and total assets.

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Definitions:

Distributive Justice

A principle concerned with the fair allocation of resources and benefits among members of a society or an organization.

Performance

The level of achievement or output that an employee demonstrates in their job duties over a certain period.

Bias

A predisposition or prejudice towards or against something or someone, often in a way considered to be unfair.

Affective

Relating to moods, feelings, and attitudes; often used in psychology to describe emotional states.