XYZ CoPaid $1,000 in Dividends to Stockholders

question 75

Multiple Choice

XYZ Co.paid $1,000 in dividends to stockholders.How does this transaction affect the accounts of XYZ?

• A) Cash will decrease by $1,000 and retained earnings will decrease by $1,000.
• B) Cash will decrease by $1,000 and expenses will increase $1,000.
• C) Cash will decrease by $1,000 and revenues will decrease $1,000.
• D) Net income will decrease by $1,000.

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Definitions:

Intermolecular Forces

Forces of attraction or repulsion which act between neighboring particles (atoms, molecules, or ions).

Electrostatic Attractions

The force of attraction between particles with opposite charges, fundamental in chemical bonding and interactions.

Two Molecules

Refers to a pair of molecules, which could be identical or different, involved in a chemical process or reaction.

Sodium Chloride

A chemical compound commonly known as table salt, consisting of sodium and chlorine atoms, used extensively in food preparation and preservation.