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 decrease Retained earnings must increase None of these

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 decrease Retained earnings must increase None of these

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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Question

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 decrease

Retained earnings must increase

None of these

Please avoid solutions in an image format thank you

The balance sheet equation must decrease

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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