Perez Company paid a $300 cash dividend.Which of the following accurately reflects how this event affects the company's financial statements?

Question

Quizplus · Accepted Answer

Paying cash dividends decreases assets (cash)and decreases equity (retained earnings)on the balance sheet.It does not affect the income statement,but is reported as a cash outflow for financing activities on the statement of cash flows.

Perez Company Paid a $300 Cash Dividend