Walter Co.declared a dividend.On the payment date of the dividend,its:
A) assets decreased and its stockholders' equity decreased.
B) assets decreased and its liabilities decreased.
C) assets decreased and its stockholders' equity increased.
D) liabilities decreased and its common stock decreased.

Question

Quizplus · Accepted Answer

On the payment date of the dividend, the company pays out cash, which decreases its assets, and the liability for the dividend is settled, which decreases its liabilities.

Walter CoDeclared a Dividend