Which of the Following Would Result When a Company Pays

question 11

Multiple Choice

Which of the following would result when a company pays a previously declared cash dividend?

• A)Current liabilities are reduced and a financing cash flow is created.
• B)Stockholders' equity is reduced and a financing cash flow is created.
• C)Current assets are reduced and an investing cash flow is created.
• D)Stockholders' equity is reduced and an investing cash flow is createD.Declaring a dividend creates a dividend payable.Paying the dividend reduces this current liability account.Paying dividends are classified as financing cash flows.

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Definitions:

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A conceptual framework regarding the characteristic patterns of thoughts, feelings, and behaviors that make up an individual's personality.

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