How Does the Declaration of a Cash Dividend Affect the Accounting

question 103

Multiple Choice

How does the declaration of a cash dividend affect the accounting equation?

• A)increase to Liabilities and a decrease to Stockholders' Equity.
• B)increase to Liabilities and a decrease to Assets.
• C)increase to Assets and a decrease to Liabilities.
• D)increase to Stockholders' Equity and a decrease to Assets.

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Definitions:

Stunted Growth

A condition in which growth and development are significantly below the normal rates for age, often due to malnutrition or neglect.

Failure To Thrive

A medical and psychological condition typically noticed in infants and children, where they exhibit significantly slower physical development compared to peers, often due to malnutrition, emotional neglect, or underlying health issues.

Proportions

The relative sizes or ratios of parts to a whole or to one another within a whole, commonly used in mathematical, artistic, and design contexts.

Neonates

Newborn babies, especially those less than a month old, characterized by rapid physical growth and developmental changes.