The Ultimate Effect of Incurring an Expense Is to Reduce

question 26

Essay

The ultimate effect of incurring an expense is to reduce stockholders' equity. The declaration of a cash dividend also reduces stockholders' equity. Explain the difference between an expense and a cash dividend and explain why they have the same effect on stockholders' equity.

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Definitions:

United States

A country located primarily between Canada and Mexico in North America, characterized by a diverse culture and a federal republic governmental structure.

Same Sex Activity

Sexual relations between individuals of the same sex, which can be a part of a person's exploration of their sexuality or expression of their sexual orientation.

U.S. Men

This term does not refer to a specific concept and is too broad without additional context; might relate to demographic or sociologic discussions regarding males residing in the United States.

U.S. Women

This term is too broad and not directly related to a specific psychological or physiological concept without more context.