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:

Polyandry

A form of marriage in which a woman is married to two or more men at the same time.

Polygyny

A type of matrimonial arrangement where a man can concurrently have multiple wives.

Polygamy

A marital practice in which an individual has more than one spouse simultaneously, recognized in some cultures and religions.

Breadwinners

Persons who earn the primary source of income for a household, supporting the family's financial needs.