The board of directors of Riverside Company declared a cash dividend.Two weeks later,the dividend was disbursed to stockholders.The dividend disbursement will ________.
A)decrease net income
B)decrease stockholders' equity
C)decrease liabilities
D)increase stockholders' equity

Question

Quizplus · Accepted Answer

The disbursement of a cash dividend decreases liabilities because the dividend payable liability is settled when the cash is paid out to stockholders.

The Board of Directors of Riverside Company Declared a Cash