Register now or log in to join your professional community.
a. It will decrease
b. It will increase
c. There would be no change
d. It depends on the dividend date
sure>>>>>>>>>>>>>>>>>a. It will decrease
When a company pays out previous declared dividend, the cash will decrease at the same time the liability of dividend to be payable from the balance sheet will will get reduced.
The correct option is :
A . It will decrease .
The decision to announce the distribution of profits from the difficult decisions taken by management and the task that
In the company, because of this decision it has a direct impact on the investor and the company, as the main objective
Any investor is to achieve profits, many investors seeking to make a profit are underway
The result of the distribution process, and that the administration should strike a balance between dividends and profits
Retained, especially in the new and developing companies that are in need of funding, from here to discuss
The impact of this research announcement of the dividend on the stock market and the quantities of the stock price
Traded in the market.
It depends on the date of the announcement of the earnings distribution
d. Depends on the dividend date
the cash will be decreased.
at firist we need the impact on cash
it will be decreases because there are an amount go out of the cash to pay to the dividend
the correct answer i (a) decreses
but Mr georgie's answer is correct in the case of needed the general impact
thus his explaination is useful in my openion
thanks for all
A company pays out a previous declared common stock dividend. What is its effect on the cash?
a. It will decrease
The effect is being sought after the company "Pays". Thats why, in my opinion, the cash must decrease.
I think the answer should be (A).
The journal entry will be :
Debit / dividend payable account
Credit / cash account
Since it was previously declared so the Dividend Pyable account will be debited and the Cash account will be credited. Hence cash will decrease.
a. It will decrease
Impact be on the cash account irrespective of the date whenever a cash distribution
