Which of the Following Would Result When a Company Pays

question 74

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.