Failure to record dividends paid would result in which of the following?
A)Net income being understated.
B)An increase in total liabilities.
C)Stockholders' equity being overstated.
D)Net income being overstated.

Question

Quizplus · Accepted Answer

Failure to record dividends paid would result in an overstatement of the stockholders' equity because the reduction in retained earnings is not reflected in the accounting records.

Failure to Record Dividends Paid Would Result in Which of the Following