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In February, 2009, Despot Declared Cash Dividends of $12 Million

Question 55

Multiple Choice

In February, 2009, Despot declared cash dividends of $12 million to be paid in April of that year. What effect did the April transaction have on Despot's accounts?


A) Decreased assets and liabilities
B) Decreased assets and shareholders' equity
C) Increased liabilities and decreased shareholders' equity
D) None of these is correct.

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