Dividends paid to the shareholders when declared will:

Name: Dividends paid to the shareholders when declared will:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When dividends are paid to the shareholders, it implies a decrease in the company's assets (cash) and a decrease in shareholders' equity since earnings are being distributed. The liabilities of the company are not affected by the payment of dividends. Therefore, option D - decrease assets and decrease shareholders' equity is the correct answer.

Dividends Paid to the Shareholders When Declared Will