Asked by Tishera Brooks on Jun 09, 2024
Verified
Dividends paid to stockholders decrease assets and increase equity.
Dividends Paid
Payments made by a corporation to its shareholders, usually derived from the company's profits.
Assets
Economic resources or owned items of value, such as cash, property, equipment, that an individual, company, or country owns or controls with the expectation that it will provide future benefit.
Equity
The value of an ownership interest in property, including shareholders' equity in a corporation.
- Gain an understanding of how stockholders' equity is influenced by transactional activities.
- Differentiate between assets, liabilities, and stockholders' equity.
Verified Answer
Learning Objectives
- Gain an understanding of how stockholders' equity is influenced by transactional activities.
- Differentiate between assets, liabilities, and stockholders' equity.
Related questions
If Net Income for a Company Was $50,000, $20,000 in ...
The Account Type and Normal Balance of Unearned Revenue Is ...
Which of the Following Will Increase Stockholders' Equity ...
Total Stockholders' Equity of Grasse Company Is Not Affected When ...
There Would Be 100,000 Shares of Common Stock Outstanding When ...