Perez Company paid a $300 cash dividend.Which of the following accurately reflects how this event affects the company's financial statements?
$$\begin{array} { | l | c | l | c | c | c | c | c | }
\hline & \text { Assets } & = & \text { Liabilities } & + & \begin{array} { c }
\text { Common } \
\text { Stack }
\end{array} & + & \begin{array} { c }
\text { Retained } \
\text { Earnings }
\end{array} \
\hline \text { A } & 300 & = & 300 & + & \text { NA } & + & \text { NA } \
\hline \text { B. } & ( 300 ) & = & \text { NA } & + & ( 300 ) & + & \text { NA } \
\hline \text { C } & ( 300 ) & = & \text { NA } & + & \text { NA } & + & ( 300 ) \
\hline \text { D. } & 300 & = & \text { NA } & + & \text { NA } & + & 300 \
\hline
\end{array}$$

Question

Perez Company paid a $300 cash dividend.Which of the following accurately reflects how this event affects the company's financial statements?
$$\begin{array} { | l | c | l | c | c | c | c | c | } 
\hline & \text { Assets } & = & \text { Liabilities } & + & \begin{array} { c } 
\text { Common } \
\text { Stack }
\end{array} & + & \begin{array} { c } 
\text { Retained } \
\text { Earnings }
\end{array} \
\hline \text { A } & 300 & = & 300 & + & \text { NA } & + & \text { NA } \
\hline \text { B. } & ( 300 ) & = & \text { NA } & + & ( 300 ) & + & \text { NA } \
\hline \text { C } & ( 300 ) & = & \text { NA } & + & \text { NA } & + & ( 300 ) \
\hline \text { D. } & 300 & = & \text { NA } & + & \text { NA } & + & 300 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Paying a cash dividend decreases assets (cash) and decreases retained earnings, reflecting a distribution of earnings to shareholders.

Perez Company Paid a $300 Cash Dividend A) Option a B) Option B C) Option C D)

Perez Company Paid a $300 Cash Dividend A) Option a
B) Option B
C) Option C
D)