If Dividends Payable decreased during the period, then cash paid for dividends exceeded dividends declared during the current year.

Question

Quizplus · Accepted Answer

If Dividends Payable decreased during the period, it means that cash paid for dividends exceeded dividends declared during the current year. This is because Dividends Payable represents the amount of dividends that have been declared but not yet paid out, so if this amount decreases it means that some of the declared dividends have been paid out in cash.

If Dividends Payable Decreased During the Period, Then Cash Paid