Asked by
Chelsea Rosales
on Nov 15, 2024
Verified
Declaration of a cash dividend causes:
A) a decrease in stockholders' equity.
B) an increase in cash.
C) a decrease in liabilities.
D) None of these answers is correct.
Stockholders' Equity
The residual interest in the assets of a corporation after deducting liabilities, representing the ownership interest of shareholders in the company.
Cash Dividend
A payment made by a company out of its earnings to shareholders, usually in the form of cash.
- Acquire knowledge on the methodology and repercussions of announcing and disbursing dividends.
Verified Answer
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Learning Objectives
- Acquire knowledge on the methodology and repercussions of announcing and disbursing dividends.