Dividends paid: a. decrease revenues. b. decrease equity. c. increase liability. d. increase expenses.

Question

Dividends paid: a. decrease revenues. b. decrease equity. c. increase liability. d. increase expenses.
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Solution 1

b. decrease equity.

When a company pays dividends, it reduces the amount of retained earnings, a component of shareholders' equity, on its balance sheet. This is because retained earnings are part of the profits that the company has chosen to reinvest in the business, rather than distribute to sha Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
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