When a Previously Declared Dividend Is Paid,which of the Following

question 97

Multiple Choice

When a previously declared dividend is paid,which of the following occurs?

• A) assets increase
• B) stockholders' equity increases
• C) liabilities decrease
• D) assets remain unchanged

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Definitions:

Specifically Outlined

Described or detailed in a clear and explicit manner, leaving no room for ambiguity.

Acts

Formal decisions, laws, or statutes enacted by a government's legislative body.

Agency Coupled

A principal-agent relationship that cannot be terminated at will by the principal because it includes an interest beneficial to the agent.

Principal

The original amount of money loaned or invested, separate from interest or earnings.