The declaration and payment of a dividend will
A) decrease net income.
B) increase liabilities.
C) not affect total assets.
D) decrease stockholders' equity.

Name: The declaration and payment of a dividend will A) decrease net income. B) increase liabilities. C) not affect total assets. D) decrease stockholders' equity.
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Question

Quizplus · Accepted Answer

Declaring and paying dividends reduces retained earnings, a component of stockholders' equity. Therefore, option D is the correct choice.

The Declaration and Payment of a Dividend Will