Cash dividends paid to the stockholders will:

Name: Cash dividends paid to the stockholders will:
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

Cash dividends are payments made from the company's retained earnings to its stockholders. As a result, the company's assets decrease (since cash leaves the company), and the stockholders' equity also decreases (since the retained earnings are reduced). Therefore, the correct answer is D, which states that cash dividends paid to the stockholders will decrease assets and decrease stockholders' equity.

Cash Dividends Paid to the Stockholders Will