Question

When cash payments are made to stockholders, what is the effect on the company's accounts?A. Cash decreases and dividends increase.B. Cash increases and dividends decrease.C. Cash decreases and common stock decreases.D. Cash increases and common stock increases.

Answer 1

Answer:

A. Cash decrease and dividends increase

Explanation:

Since the company is going to pay stockholders. The cash will decrease and the dividends that are going to be paid to the stockholders will increase.