Payment of dividendsA)Increase assets, increase liabilitiesB)Increase liabilities, decrease stockholders' equityC)Increase assets, increase stockholders' equityD)No effectE)Decrease assets, decrease liabilitiesF)Decrease assets, decrease stockholders' equity

Question

Arianna Stokes · Accepted Answer

Final Answer : f, Explanation :  Payment of dividends is a financing activity and therefore will decrease cash from financing activities on the statement of cash flows prepared using the indirect method.

Payment of dividends
A)Increase assets, increase liabilities
B)Increase liabilities, decrease stockholders' equity
C)Increase assets, increase stockholders' equity
D)No effect
E)Decrease assets, decrease liabilities
F)Decrease assets, decrease stockholders' equity

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