Under ASPE,an increase in cash dividends will have the following effect,

Question

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Under Accounting Standards for Private Enterprises (ASPE) in Canada, an increase in cash dividends does not directly affect retained earnings, net income, or the accounting equation (Assets = Liabilities + Shareholders' Equity) in the way described. Instead, an increase in cash dividends directly reduces retained earnings but does not affect net income for the period in which they are declared. The accounting equation remains balanced through adjustments to retained earnings and cash.

Under ASPE,an Increase in Cash Dividends Will Have the Following