Which of the following occurs when a previously declared dividend is paid?
A)Equity increases
B)Liabilities increase
C)Liabilities decrease
D)Assets increase

Name: Which of the following occurs when a previously declared dividend is paid? A)Equity increases B)Liabilities increase C)Liabilities decrease D)Assets increase
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Question

Quizplus · Accepted Answer

When a previously declared dividend is paid, the liability (dividends payable) decreases as the company fulfills its obligation to pay the dividend.

Which of the Following Occurs When a Previously Declared Dividend