XYZ CoPaid $1,000 in Dividends to Stockholders

question 75

Multiple Choice

XYZ Co.paid $1,000 in dividends to stockholders.How does this transaction affect the accounts of XYZ?

• A) Cash will decrease by $1,000 and retained earnings will decrease by $1,000.
• B) Cash will decrease by $1,000 and expenses will increase $1,000.
• C) Cash will decrease by $1,000 and revenues will decrease $1,000.
• D) Net income will decrease by $1,000.

Grasp the historical context and evolution of the international financial system.

Understand the concepts of financial account surplus and deficit and their implications.

Distinguish between speculation and arbitrage in the foreign exchange market.

Recognize the role and impact of historical agreements on the current international financial system.