The 12/31/2018 balance sheet of Despot Inc. included the following: In January 2018, Despot recorded a transaction with this journal entry:
- In February 2018, Despot declared cash dividends of $12 million to be paid in April of that year. What effect did the April transaction have on Despot's accounts?
A) Decreased assets and liabilities.
B) Decreased assets and shareholders' equity.
C) Increased liabilities and decreased shareholders' equity.
D) None of these answer choices are correct

Question

The 12/31/2018 balance sheet of Despot Inc. included the following:  In January 2018, Despot recorded a transaction with this journal entry: 
- In February 2018, Despot declared cash dividends of $12 million to be paid in April of that year. What effect did the April transaction have on Despot's accounts?
A) Decreased assets and liabilities. 
B) Decreased assets and shareholders' equity. 
C) Increased liabilities and decreased shareholders' equity. 
D) None of these answer choices are correct

Quizplus · Accepted Answer

The Answer of The 12/31/2018 balance sheet of Despot Inc. included the following:  In January 2018, Despot recorded a transaction with this journal entry: 
- In February 2018, Despot declared cash dividends of $12 million to be paid in April of that year. What effect did the April transaction have on Despot's accounts?
A) Decreased assets and liabilities. 
B) Decreased assets and shareholders' equity. 
C) Increased liabilities and decreased shareholders' equity. 
D) None of these answer choices are correct

The 12/31/2018 Balance Sheet of Despot Inc