Recording the Payment (As Distinguished from the Declaration)of a Cash

question 27

Multiple Choice

Recording the payment (as distinguished from the declaration) of a cash dividend whose declaration was already recorded will:

• A)decrease both the current ratio and working capital.
• B)have no effect on the current ratio or earnings per share.
• C)increase the current ratio but have no effect on working capital.
• D)increase both the current ratio and working capital.
• E)None of these choices are correct.

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