The Declaration of a Cash Dividend Will Result in a Decrease

question 69

Multiple Choice

The declaration of a cash dividend will result in a decrease in:

• A)Cash.
• B)Contributed capital.
• C)Retained earnings.
• D)Income taxes.

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Definitions:

Selected Accounts

Specific financial accounts chosen for review or analysis due to their relevance or importance in a particular context.

Federal Income Taxes

Taxes levied by the U.S. government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Bonds Issued

Debt securities sold by corporations and government agencies to investors to raise funds for various purposes, promising to pay back the principal amount along with interest on specific dates.

Straight Line Depreciation

An approach to apportioning the expense of a tangible asset through identical yearly charges over its productive life.