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Pie
3 years ago
8

The net effects on the corporation of the declaration and payment of a cash dividend are to increase assets and increase stockho

lders' equity. increase stockholders' equity and decrease liabilities. decrease assets and decrease stockholders' equity. decrease liabilities and decrease stockholders' equity.
Business
1 answer:
s344n2d4d5 [400]3 years ago
6 0

Answer:

Decrease assets and decrease stockholders equity

Explanation:

Shareholders of the Company are rewarded for their contribution through dividends.

<u>Declaration and payment of a cash dividend results in the following journal :</u>

<em>Dividend (debit)</em>

<em>Cash (credit</em>)

Thus,

The Owners Equity Decrease whilst the Assets Account (Cash) Decreases

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