Question

select those statements below that are true about cash dividends. (check all that apply.)multiple select question.on the declaration date, liabilities are increased.on the payment date, current assets are decreased.on the payment date, retained earnings is decreased.on the date of record, retained earnings is decreased.

Answer 1

On the declaration date, liabilities are increased and on the payment date, current assets are decreased are true about cash dividends.

What is a cash dividend?

A cash dividend is a payment distributed to all stockholders from the company's current earnings or accumulated profits.

Cash dividends are given out in cash rather than as a stock dividend or another kind of value. The majority of brokers provide you the choice of receiving dividends in cash or reinvesting them.

Cash dividends are a frequent way for companies to give money back to its shareholders in the form of recurring payments in cash; these dividends are often paid out quarterly, however certain stocks may pay them out monthly, yearly, or semiannually. Each firm creates its dividend policy and evaluates whether a dividend decrease or raise is necessary on a recurring basis. Cash dividends are distributed on a per-share basis.

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