When the board of directors declares a cash dividend,the retained earnings account is debited.

Name: When the board of directors declares a cash dividend,the retained earnings account is debited.
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When a cash dividend is declared by the board of directors, the retained earnings account is debited to reflect the reduction in the company's earnings that are retained within the company, as these funds are being distributed to shareholders.

When the Board of Directors Declares a Cash Dividend,the Retained