At the Quarterly Meeting of Tangshan Mining Corporation, Held on September

question 76

Multiple Choice

At the quarterly meeting of Tangshan Mining Corporation, held on September 10th, the directors declared a $1.00 per share dividend for the firm's 100,000 shares of common stock outstanding. The net effect of declaring and paying this dividend would be to ________.

• A) decrease total assets by $100,000 and increase stockholders equity by $100,000
• B) decrease total assets by $100,000 and decrease stockholders equity by $100,000
• C) increase total assets by $100,000 and increase stockholders equity by $100,000
• D) increase total assets by $100,000 and decrease stockholders equity by $100,000

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