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Payments of dividends to stockholders :?

a) increase paid-in capital

b) decrease paid-in capital

c) increase retained income

d) decrease retained income 

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Question added by Said Shaban , Accountant , Tri State Materials Testing
Date Posted: 2015/08/19
Badar Khan
by Badar Khan , Accounts cum administrative assistant , Al Qassimia Drivng Training Centre.Sharjah

it will decrease ihe retained income because dividends will be paid out of the retained income so the correct answer is (d)

Answer is Option D - Decrease retained earnings.

Huda Adam
by Huda Adam , Faculty of Commerce Graduate , Cairo University

paying dividends will result in decrease in the retained earnings, (D)

Asad Ahmed
by Asad Ahmed , Manager Finance & Company Secretary , Connect Communications Pvt. Ltd.

If dividend is cash dividend than it effect on retained income and cash both will be decrease, but if the dividend is stock dividend than the retained income will decrease but the paid-in capital will increase

Imdad Hussain Rajput
by Imdad Hussain Rajput , Assistant Sales Manager , Forego

decrease retained earning ..............

Pradeep Singh.
by Pradeep Singh. , Manager Accounts, Finance & Importation , Amadora Group of Companies

if Dividends paid to stockholders it will decrease the Retained Earnings/Income

Muhammad Tahir Godil
by Muhammad Tahir Godil , Financial Planning and Analysis Manager , The Court Group Of Companies

D) Decrease In The Reserve of stock holders eventually decrease in the retained earnings

Deleted user
by Deleted user

d) decrease retained income....................................................................................................