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Cash dividends reduce the stockholders' equity in the corporation.
a. True
b. False

1 Answer

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To answer the question above if cash dividends reduces the stockholders' equity in the corporation is letter A, TRUE, The stockholders' equity will decrease due to corporation's asset and retained earnings decreases because of the dividend. On the other the income statement wont be affected by the declaration.
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User GowriShankar
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