How Does the Declaration of a Cash Dividend Affect the Accounting

question 122

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:

Distributed Equally

Refers to an allocation method where resources, wealth, or opportunities are evenly shared among all participants or groups involved.

Pre-Tax-And-Transfer Income

The amount of income individuals or households earn before taxes are deducted and government transfers are added.

Poverty Rate

The proportion of a population living below the national poverty line, which measures the minimum level of income deemed necessary to achieve an adequate standard of living in a given country.

Poverty Line

A specified threshold of income deemed necessary to meet basic living costs, below which individuals or families are considered to be living in poverty.