A paid dividend
A)decreases assets and shareholders' equity.
B)increases assets and shareholders' equity.
C)increases assets and decreases shareholders' equity.
D)decreases assets and increases shareholders' equity.

Question

Quizplus · Accepted Answer

When a company pays a dividend, it distributes cash to its shareholders, which decreases its assets (cash) and also decreases shareholders' equity because it is distributing part of its equity to shareholders.

A Paid Dividend