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Ramos Repair Company Paid $750 in Dividends to Its Stockholders

Question 101

Multiple Choice

Ramos Repair Company paid $750 in dividends to its stockholders. How does this transaction affect Ramos Repair Company's accounting equation?


A) Increase Assets (Accounts Receivable) and decrease Assets (Cash)
B) Decrease Assets (Cash) and decrease Stockholders' Equity (Dividends)
C) Decrease Assets (Cash) and decrease Liabilities (Accounts Payable)
D) Increase Assets (Cash) and decrease Stockholders' Equity (Dividends)

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