Declaring and Paying Dividends Causes a Decrease in Both Assets

question 21

True/False

Declaring and paying dividends causes a decrease in both assets and equity.

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Definitions:

Businesses

Entities engaged in commercial, industrial, or professional activities with the goal of generating profits.

Product Market

A marketplace where final goods or services are offered to consumers, businesses, and the public sector.

Footballs

Spherical objects used in the game of football (soccer) or oval-shaped objects used in American football, both designed for being kicked, thrown, or carried to score points.

Labor

The physical and mental effort used in the production of goods and services.