If a firm records positive net income for the year and also pays a cashdividend then:Multiple ChoiceThe balance sheet equation must increaseRetained earnings must increaseNone of theseRetained earnings must decreaseThe balance sheet equation must decrease

Balance Sheet equation represents that all assets of the business are equal to its equity and…

Answered: If a firm records positive net income…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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If a firm records positive net income for the year and also pays a cash dividend then: Multiple Choice The balance sheet equation must increase Retained earnings must increase None of these Retained earnings must decrease The balance sheet equation must decrease