How does the declaration of a cash dividend affect the following account balances?
$\begin{array}{ccc}
& \text {Retained Earnings} &\text { Current Liabilities }& \text {Cash Account }\\end{array}$
A) $\begin{array}{ccc}& \text {Decrease }&&&&&\text { No Effect} &&&&\text { Decrease }\\end{array}$
B) $\begin{array}{ccc}& \text {Increase }&&&&&\text { Decrease }&&&&\text { No Effect} \\end{array}$
C)$\begin{array}{ccc}& \text {Decrease} &&&&& \text {Increase} &&&&&\text { No Effect} \\end{array}$
D) $\begin{array}{ccc}&\text { Decrease} &&&&\text { No Effect }&&&&&\text { Increase} \ \end{array}$

Question

How does the declaration of a cash dividend affect the following account balances? 
$\begin{array}{ccc}
& \text {Retained Earnings} &\text { Current Liabilities }& \text {Cash Account }\\end{array}$
A) $\begin{array}{ccc}& \text {Decrease }&&&&&\text { No Effect} &&&&\text { Decrease }\\end{array}$ 
B) $\begin{array}{ccc}& \text {Increase }&&&&&\text { Decrease }&&&&\text { No Effect} \\end{array}$ 
C)$\begin{array}{ccc}& \text {Decrease} &&&&& \text {Increase} &&&&&\text { No Effect} \\end{array}$ 
D) $\begin{array}{ccc}&\text { Decrease} &&&&\text { No Effect }&&&&&\text { Increase} \ \end{array}$

Quizplus · Accepted Answer

The Answer of How does the declaration of a cash dividend affect the following account balances? 
$\begin{array}{ccc}
& \text {Retained Earnings} &\text { Current Liabilities }& \text {Cash Account }\\end{array}$
A) $\begin{array}{ccc}& \text {Decrease }&&&&&\text { No Effect} &&&&\text { Decrease }\\end{array}$ 
B) $\begin{array}{ccc}& \text {Increase }&&&&&\text { Decrease }&&&&\text { No Effect} \\end{array}$ 
C)$\begin{array}{ccc}& \text {Decrease} &&&&& \text {Increase} &&&&&\text { No Effect} \\end{array}$ 
D) $\begin{array}{ccc}&\text { Decrease} &&&&\text { No Effect }&&&&&\text { Increase} \ \end{array}$

How Does the Declaration of a Cash Dividend Affect the Following