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The net effects on the corporation of the declaration and payment of a cash dividend are to increase assets and increase stockholders' equity. increase stockholders' equity and decrease liabilities. decrease assets and decrease stockholders' equity. decrease liabilities and decrease stockholders' equity.

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Zviko

Answer:

Decrease assets and decrease stockholders equity

Explanation:

Shareholders of the Company are rewarded for their contribution through dividends.

Declaration and payment of a cash dividend results in the following journal :

Dividend (debit)

Cash (credit)

Thus,

The Owners Equity Decrease whilst the Assets Account (Cash) Decreases

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