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Dividends cause a(n) increase/decrease)_________ in equity and are recorded directly in

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User WesR
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Answer:

Decrease (debit) in equity, Cash Dividends Payable (credit, liability account)

Step-by-step explanation:

The journal entry to record the declaration of the cash dividends involves a decrease (debit) to Retained Earnings (a stockholders' equity account) and an increase (credit) to Cash Dividends Payable (a liability account).

(opentextbc.ca)

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User Nakia
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