A Company Declared and Paid Dividends of $1800

Multiple Choice

A company declared and paid dividends of $1800. How does this transaction affect the accounting equation?

A) Add $1800 to Revenue and add $1800 to Cash.
B) Add $1800 to Dividends and add $1800 to Accounts Receivable.
C) Subtract $1800 from Retained Earnings and subtract $1800 from Cash.
D) Add $1800 to Dividend Expense and subtract $1800 from Cash.