Receiving a Cash Dividend Affects What Part of the Balance

question 37

Multiple Choice

Receiving a cash dividend affects what part of the balance sheet?

• A) Increases assets and increases paid-in-capital
• B) Increases assets and decreases stockholders' equity
• C) Increases assets and increases retained earnings
• D) Has no effect on assets or total equity

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Definitions:

Actual Authority

The express or implied legal power given to an agent by a principal to undertake specific actions on the principal's behalf.

Uniform Durable Power

A legal document that grants another individual the authority to manage one’s financial and legal affairs even if the grantor becomes incapacitated.

Third Restatement

Refers to updates or revisions of fundamental legal principles in areas such as Torts, Contracts, Agency, Trusts, and Foreign Relations, established by the American Law Institute.

Accounts Collection

The process of pursuing payments of debts owed by individuals or businesses.