Recording the payment of dividends to shareholders involves:
A) Increasing Dividends and decreasing Cash
B) Increasing Cash and Common Stock
C) Increasing Withdrawal Expense and decreasing Cash
D) Decreasing Notes Payable and decreasing Cash
E) None of the above

Question

Quizplus · Accepted Answer

Recording the payment of dividends involves decreasing the cash account because cash is paid out to shareholders, and increasing the dividends account to reflect the distribution of earnings to shareholders.

Recording the Payment of Dividends to Shareholders Involves