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What happens to a company's Cash account if it declares a dividend on its shares of stock?

Accounting Auditing Cost Accounting Budgeting Financial Accounting
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Question added by Michael Lagunday , Accountant , Dubai Camel Racing Club
Date Posted: 2015/08/17
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Md. Mohin Uddin Mohin
by Md. Mohin Uddin Mohin , Company Secretary and AGM - Accounts & Finance , Zaheen Spinning Limited

 Cash Account will remain unchanged for declaration of dividend as there is no transaction occurred.

Hossam Mohamed
by Hossam Mohamed , Senior Accountant , Allied Arab Assurance Brokerage

If the company pays the dividend by cash,  the cash account decreases.

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