Answered: The effect of the declaration of a cash…

The effect of the declaration of a cash dividend by the board of directors is to Increase Decrease Stockholders' equity Assets Liabilities Stockholders' equity Assets Liabilities Liabilities Assets

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter11: Accounting For Transactions Using A General Journal

Section11.3: Accounting For The Declaration And Payment Of A Dividend

Problem 4AYU

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Question

The effect of the declaration of a cash dividend by the board of directors is to

Increase

Decrease

Stockholders' equity

Assets

Liabilities

Stockholders' equity

Assets

Liabilities

Assets

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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