When a Dividend Has Been Declared but Not Yet Paid

question 92

Multiple Choice

When a dividend has been declared but not yet paid

• A)assets will increase and shareholders' equity will decrease.
• B)assets will decrease and shareholders' equity will increase.
• C)the balance sheet will not change until the dividend is paid.
• D)liabilities will increase and shareholders' equity will decrease.

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Definitions:

Sales Budget

A detailed forecast of an organization's sales revenue, including units sold and revenue expected for a particular period.

Unit Sales

The total quantity of items sold by a business within a specific period.

Cash Sales

Transactions in which goods or services are paid for at the time of sale with cash or its equivalent, without credit.

Credit Sales

Sales made on credit, allowing customers to purchase goods or services immediately and pay for them at a later date.