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Which of the Following Would Result When a Company Pays

Question 116

Multiple Choice

Which of the following would result when a company pays a previously declared cash dividend?


A) Current liabilities are reduced and a financing cash flow is created.
B) Stockholders' equity is reduced and a financing cash flow is created.
C) Current assets are reduced and an investing cash flow is created.
D) Stockholders' equity is reduced and an investing cash flow is created.

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