Which of the Following Occurs When a Previously Declared Dividend

question 152

Multiple Choice

Which of the following occurs when a previously declared dividend is paid?

• A) Assets increase.
• B) Equity increases.
• C) Liabilities decrease.
• D) Liabilities increase.

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Definitions:

Rises

In the context of graphs, refers to the upward movement of a function or value as it moves along the horizontal axis.

Falls

The act or an instance of falling; movement downwards due to gravity.

Horizontal

Parallel to the horizon; moving or lying in a flat position.

Sketch Graph

The act of drawing a rough or simplified version of a graph to represent a function or data visually without precise calculations.