A Company Declared and Paid Dividends of $500

Multiple Choice

A company declared and paid dividends of $500.In transaction analysis,how does this transaction affect the accounting equation?

A) Add $500 to Revenue account and add $500 to Cash account.
B) Add $500 to Dividends account and add $500 to Accounts Receivable account.
C) Subtract $500 from Retained Earnings account and subtract $500 from Cash account.
D) Add $500 to Dividend Expense account and subtract $500 from Cash account.