Which One of the Following Correctly Reflects the Effects on the Financial

question 15

Multiple Choice

Which one of the following correctly reflects the effects on the financial statements of the investor caused by dividends declared on trading securities?

• A) Current ratio increases
• B) Working capital decreases
• C) Revenue and assets decrease
• D) Assets increase and shareholders' equity decreases

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Definitions:

Acquired Disease

An illness that is not present at birth but develops after birth, often as a result of infection, environmental exposure, or lifestyle choices.

Communicable

Capable of being transmitted from one person or organism to another, usually referring to diseases.

Inherited

Transferred from parent to offspring through the genetic material.

Macrophages

A type of white blood cell that engulfs and digests cellular debris, foreign substances, microbes, and cancer cells in a process called phagocytosis.