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A corporation declared a cash dividend on its ordinary shares on Dec. 15, 2018, payable on Jan. 12, 2019. How would this dividend affect shareholders’ equity on the following dates? dec. 15, 2018        Dec 31, 2018        Jan. 12, 2019 A. Decrease             No effect              Decrease B. Decrease             No effect              No effect C. No effect             Decrease              No effect D. No effect            No effect              Decrease explain why the other choices are not the answers.

A corporation declared a cash dividend on its ordinary shares on Dec. 15, 2018, payable on Jan. 12, 2019. How would this dividend affect shareholders’ equity on the following dates? dec. 15, 2018        Dec 31, 2018        Jan. 12, 2019 A. Decrease             No effect              Decrease B. Decrease             No effect              No effect C. No effect             Decrease              No effect D. No effect            No effect              Decrease explain why the other choices are not the answers.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A corporation declared a cash dividend on its ordinary shares on Dec. 15, 2018, payable on Jan. 12, 2019. How would this dividend affect shareholders’ equity on the following dates?

dec. 15, 2018        Dec 31, 2018        Jan. 12, 2019

A. Decrease             No effect              Decrease

B. Decrease             No effect              No effect

C. No effect             Decrease              No effect

D. No effect            No effect              Decrease

explain why the other choices are not the answers.

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