The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

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When a company declares and pays a cash dividend, it reduces its cash balance (an asset) and decreases stockholders' equity by the same amount. This is because the payment of cash dividends represents a distribution of profits to shareholders, reducing the company's overall equity position. Additionally, this transaction does not impact total liabilities or total expenses.

The Cumulative Effect of the Declaration and Payment of a Cash