Asked by
Alayna stewart
on Nov 14, 2024
Verified
The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to
A) decrease both total liabilities and shareholders' equity.
B) increase both total expenses and total liabilities.
C) increase both total assets and shareholders' equity.
D) decrease both total assets and shareholders' equity.
Shareholders' Equity
This represents owners' claims after all liabilities have been deducted from the total assets of a company.
Total Liabilities
The sum of all financial obligations a company owes to outside parties.
- Absorb the notions and implications concerning dividend announcements and payouts.
- Distinguish between the effects of stock dividends, stock splits, and cash dividends on a corporation's financial statements.
Verified Answer
JR
Learning Objectives
- Absorb the notions and implications concerning dividend announcements and payouts.
- Distinguish between the effects of stock dividends, stock splits, and cash dividends on a corporation's financial statements.