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[SOLVED] The Chester Company has just issued $6,493,586 in dividends last year.

The Chester Company has just issued $6,493,586 in dividends last year. The effect of this payment on the balance sheet is:

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  •  Net Profit will decrease $6,493,586
  •  Expenses will increase $6,493,586
  •  Equity will decrease $6,493,586
  •  Liabilities will increase $6,493,586

 



honeyd


20-04-21 | 22:19:51

retained earning increases equity.
dividend reduces retained earnings
hence, the correct answer is;
Equity will decrease $6,493,586

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