A Company Declared and Paid Dividends of $500

question 66

Multiple Choice

A company declared and paid dividends of $500.In transaction analysis,how does this transaction affect the accounting equation?

• A)Add $500 to Revenue account and add $500 to Cash account.
• B)Add $500 to Dividends account and add $500 to Accounts Receivable account.
• C)Subtract $500 from Retained Earnings account and subtract $500 from Cash account.
• D)Add $500 to Dividend Expense account and subtract $500 from Cash account.

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