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:

Transit

The act or process of moving people or goods from one place to another.

Common Carrier

An entity that offers transportation services to the public under the license or authority provided by a regulatory body, obligated to serve without discrimination.

Shipping Arrangements

The planning and execution involved in the transportation of goods from one location to another, including modes of transport, routes, and logistics.

Shipping Term

Contractual terms between a seller and buyer indicating the delivery details, responsibility for goods, and the point at which risk transfers from one party to the other during transport.