The ultimate effect of incurring an expense is to reduce equity. The declaration of a cash dividend also reduces equity. Explain the difference between an expense and a cash dividend and explain why they have the same effect on equity.

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The Answer of The ultimate effect of incurring an expense is to reduce equity. The declaration of a cash dividend also reduces equity. Explain the difference between an expense and a cash dividend and explain why they have the same effect on equity.

The Ultimate Effect of Incurring an Expense Is to Reduce