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.

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Definitions:

Hallucinations

Perceptions or sensations experienced without the presence of external stimuli, often auditory or visual in nature.

Compulsions

Are repetitive behaviors or mental acts that a person feels the need to perform in response to an obsession or according to rigidly applied rules.

Dissociative Fugue

A rare psychological state in which a person temporarily loses their sense of personal identity and may impulsively travel or wander away from their usual surroundings.

Panic Disorder

A psychiatric disorder characterized by sudden episodes of intense fear or anxiety and physical symptoms, such as heart palpitations and dizziness.