Question: A company declares a dividend on Dec . 1 , 2 0 2 1 , for owners of the security on Dec. 1 0 (

A company declares a dividend on Dec.1,2021, for owners of the security on Dec. 10(the date of record) to be paid on Jan. 1,2022. Which of the following are true?
1. Retained earnings decreases for the fiscal year ending 12/31/2021.
2. The current ratio decreases for the fiscal year ending 12/31/2021.
3. Net income decreases for the fiscal year ending 12/31/2021.
4. None of the above.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!