96. An entity declared a cash dividend on a certain date, payable on another date. Retained earnings would * O A. Increase on the date of declaration B. Not be affected on the date of declaration O C. Not be affected on the date of payment D. Decrease on the date of payment

96. An entity declared a cash dividend on a certain date, payable on another date. Retained earnings would * O A. Increase on the date of declaration B. Not be affected on the date of declaration O C. Not be affected on the date of payment D. Decrease on the date of payment

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 11MC: Which of the following would trigger a subtraction in the indirect operating section? A. gain on...

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

96. An entity declared a cash dividend
on a certain date, payable on another
date. Retained earnings would *
O A. Increase on the date of declaration
B. Not be affected on the date of
declaration
O C. Not be affected on the date of payment
D. Decrease on the date of payment

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