Share dividends OA. have no effect on total shareholders' equity OB. are distributions of cash to the shareholders OC. reduce the total assets of the corporation

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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Please answer with reason why the option is correct and why the other options are not correct
Share dividends
***
OA. have no effect on total shareholders' equity
OB. are distributions of cash to the shareholders
OC. reduce the total assets of the corporation
OD. increase the total liabilities of the corporation, and decrease the total shareholders' equity
Transcribed Image Text:Share dividends *** OA. have no effect on total shareholders' equity OB. are distributions of cash to the shareholders OC. reduce the total assets of the corporation OD. increase the total liabilities of the corporation, and decrease the total shareholders' equity
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