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zaharov [31]
2 years ago
9

The effect of the declaration of a cash dividend on a company's financial statements is to:_______

Business
1 answer:
likoan [24]2 years ago
5 0

The effect of the declaration of a cash dividend on a company's financial statements is to decrease both stockholders' equity and total assets.

<h3>What are cash dividends?</h3>

Dividends are cash payments made to the stockholders of a public company. Stockholders are individuals who purchase shares in a public company.

Dividends are paid with cash, thus, the assets of a company would decline. Since assets is positively related to stockholders equity, stock holder's equity would also decline.

To learn more about dividends, please check: brainly.com/question/13672624

#SPJ1

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