Sandeep Corp. declared on December 21, 2021 a dividend of $50,000 to be paid on January...

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Sandeep Corp. declared on December 21, 2021 a dividend of $50,000 to be paid on January 21, 2022. The bookkeeper debited Dividends Expense and credited Retained Earnings for $50,000. How does this error affect the following elements of the financial statements for 2021? Net earnings A. Overstated B. Understated C. Understated Understated Retained Earnings Overstated Not affected Understated Overstated Liabilities Overstated Not affected Understated Understated For a merchandising company, the cost of inventory becomes an expense when Sandeep Corp. declared on December 21, 2021 a dividend of $50,000 to be paid on January 21, 2022. The bookkeeper debited Dividends Expense and credited Retained Earnings for $50,000. How does this error affect the following elements of the financial statements for 2021? Net earnings A. Overstated B. Understated C. Understated Understated Retained Earnings Overstated Not affected Understated Overstated Liabilities Overstated Not affected Understated Understated For a merchandising company, the cost of inventory becomes an expense when