nen a dividend ha Multiple Choic the as Ili
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:nen a dividend ha
Multiple Choic
the
as
Ili
Transcribed Image Text:the balance sheet will not change until the dividend is paid.
assets will decrease and shareholders' equity will increase.
liabilities will increase and shareholders' equity will decrease.
assets will increase and shareholders' equity will decrease.
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Step 1
Declaration of dividend is a method of distribution of profit to the shareholders. So it decreases the retained earning account.
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