Which of the Following Statements Is True Concerning the Declaration

Multiple Choice

Which of the following statements is true concerning the declaration and payment of cash dividends?

A) Declaration and payment of cash dividends will reduce the amount of net income.
B) Declaration and payment of cash dividends will not reduce the retained earnings balance.
C) Declaration and payment of cash dividends will reduce the amount of resources available to invest in assets.
D) Declaration and payment of cash dividends is calculated on the amount of shares of stock issued,not the amount of shares outstanding.