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A Company Paid a Cash Dividend of $24,000 to Stockholders

Question 100

Multiple Choice

A company paid a cash dividend of $24,000 to stockholders.
What would the effect of this transaction on the current month's accounting equation?


A) No effect on Assets; $24,000 decrease in Liabilities; $24,000 increase in Stockholders' Equity
B) $24,000 increase in Assets; $24,000 increase in Liabilities; No effect on Stockholders' Equity
C) $24,000 decrease in Assets; No effect on Liabilities; $24,000 decrease in Stockholders' Equity
D) $24,000 decrease in Assets; $24,000 decrease in Liabilities; No effect on Stockholders' Equity

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