Asked by
La’Nihya Jones
on Nov 14, 2024
Verified
The effects of the journal entry to record the payment of the dividend on August 15, 2022, are to
A) decrease shareholders' equity and decrease liabilities.
B) decrease liabilities and decrease assets.
C) increase shareholders' equity and increase liabilities.
D) increase shareholders' equity and decrease assets.
Shareholders' Equity
The residual interest in the assets of an entity after deducting liabilities, representing the net worth contributed by the owners.
Liabilities
Financial obligations or debts owed by a company to external parties, creditors, or suppliers that must be settled over time.
- Understand the principle and consequences of declaring and disbursing dividends.
- Diagnose the impact of share transactions (issuance, repurchase) on the financial position of a corporation.
Verified Answer
GA
Learning Objectives
- Understand the principle and consequences of declaring and disbursing dividends.
- Diagnose the impact of share transactions (issuance, repurchase) on the financial position of a corporation.