The Cumulative Effect of the Declaration and Payment of a Cash

question 139

Multiple Choice

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

• A)decrease both total liabilities and shareholders' equity.
• B)increase both total expenses and total liabilities.
• C)increase both total assets and shareholders' equity.
• D)decrease both total assets and shareholders' equity.

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Definitions:

Great Compromise

An agreement reached during the Constitutional Convention of 1787 that led to the establishment of a two-chambered Congress to balance representation between large and small states.

Equal Number

A condition of having the same quantity or measure as another.

Senators

Elected officials who serve as members of the Senate, the upper chamber of the legislature in many countries, including the United States, responsible for making laws.

House of Representatives

The lower chamber of the United States Congress, consisting of members who are elected based on population from each state to serve two-year terms.