nen a dividend ha Multiple Choic the as Ili

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 5QTD
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Question
nen a dividend ha
Multiple Choic
the
as
Ili
Transcribed Image Text:nen a dividend ha Multiple Choic the as Ili
the balance sheet will not change until the dividend is paid.
assets will decrease and shareholders' equity will increase.
liabilities will increase and shareholders' equity will decrease.
assets will increase and shareholders' equity will decrease.
Transcribed Image Text:the balance sheet will not change until the dividend is paid. assets will decrease and shareholders' equity will increase. liabilities will increase and shareholders' equity will decrease. assets will increase and shareholders' equity will decrease.
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Declaration of dividend is a method of distribution of profit to the shareholders. So it decreases the retained earning account.

 

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