A corporation declared dividends on December 1 payable on January 15 to shareholders of record of December 30. The balance of Retained Earnings Question options: a decreases on December 30 b decreases on January 15 c is not affected on December 30 d is not affected on December 1

A corporation declared dividends on December 1 payable on January 15 to shareholders of record of December 30. The balance of Retained Earnings Question options: a decreases on December 30 b decreases on January 15 c is not affected on December 30 d is not affected on December 1

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 13MC: The date the board of directors votes to declare and pay a cash dividend is called the: A. date of...

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

A corporation declared dividends on December 1 payable on January 15 to shareholders of record of December 30. The balance of Retained Earnings

Question options:

a	decreases on December 30
b	decreases on January 15
c	is not affected on December 30
d	is not affected on December 1

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