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What are the overall effects of the declaration and payment of a cash dividend on Total...

What are the overall effects of the declaration and payment of a cash dividend on Total Assets, Total Liabilities, and Total Stockholders’ Equity? (increase, decrease, or no change)
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Answer #2

Dividend declaration means, distributing portion of its retained earnings to shareholders. so, at the time of declaration retained earnings account will decrease and total liabilities will increase. At the time of payment cash account also will decrease and total liabilities will decrease.

Overall Stockholders and Total assets will decrease and Total liabilities will not have any change

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answered by: anonymous
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