The net effects on the corporation of the declaration and payment of a cash dividend are to 1. decrease liabilities and increase assets. 2. increase stockholders' equity and decrease liabilities. 3. decrease assets and decrease stockholders' equity. 4. increase assets and increase stockholders' equity. 01 :O 2 O 3

The net effects on the corporation of the declaration and payment of a cash dividend are to 1. decrease liabilities and increase assets. 2. increase stockholders' equity and decrease liabilities. 3. decrease assets and decrease stockholders' equity. 4. increase assets and increase stockholders' equity. 01 :O 2 O 3

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

The net effects on the corporation of the declaration and payment of a cash dividend are to
1. decrease liabilities and increase assets.
2. increase stockholders' equity and decrease liabilities.
3. decrease assets and decrease stockholders' equity.
4. increase assets and increase stockholders' equity.
01
:O 2
O 3
0 4

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