Church Company declared and paid a cash dividend. Which of the following choices accurately reflects how this event would affect the company's financial statements?

Name: Church Company declared and paid a cash dividend. Which of the following choices accurately reflects how this event would affect the company's financial statements?
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Question

Quizplus · Accepted Answer

Assets (cash) decreases and equity decreases. The dividends do not affect the income statement, and are reported as a cash outflow for financing activities.

Church Company Declared and Paid a Cash Dividend