Declaring and Paying Cash Dividends Affects Which Accounts

question 17

Multiple Choice

Declaring and paying cash dividends affects which accounts?

• A)Cash only
• B)Capital stock only
• C)Cash and retained earnings
• D)Cash and capital stock

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Definitions:

Group Dynamics

The study of behaviors and psychological processes occurring within a social group or between social groups.

Human Relations

The study and management of how people interact within groups, aiming to improve job satisfaction and productivity through understanding and communication.

Common Sense

Sound practical judgment concerning everyday matters, or a basic ability to perceive, understand, and judge in a manner shared by nearly all people.

Human Relations

The study and management of interactions and relationships between people, especially in the workplace.