Indicate the respective effects of the declaration of a cash dividend on the following sections of the statement of financial position:

Name: Indicate the respective effects of the declaration of a cash dividend on the following sections of the statement of financial position:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

On the day a dividend is declared there is no change to total assets. Total liabilities increase by the amount of the dividend and total equity will decrease by the same amount.

Indicate the Respective Effects of the Declaration of a Cash