Answered: 14. When a company declares a cash…

14. When a company declares a cash dividend, which of the following is true? a.Assets are decreased. b.Assets are increased. c.Liabilities are increased. d.Shareholders' equity is increased.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 4MC

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

14.

When a company declares a cash dividend, which of the following is true?

a.Assets are decreased.

b.Assets are increased.

c.Liabilities are increased.

d.Shareholders' equity is increased.

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