In transaction analysis,the declaration and payment of dividends is recorded in the ________ and ________ columns of the accounting equation.
A)Dividends;Cash
B)Expenses;Accounts Receivable
C)Expenses;Accounts Payable
D)Retained Earnings;Cash

Question

Quizplus · Accepted Answer

The declaration and payment of dividends affect the Retained Earnings (as dividends reduce retained earnings) and Cash (as cash is paid out to shareholders) columns of the accounting equation.

In Transaction Analysis,the Declaration and Payment of Dividends Is Recorded