Series 7 - General Securities Representative Exam

Preview Mode

DIV corporation just paid a dividend. Which of the following is TRUE?

Current liabilities are increased & Current assets are decreased
A
Current liabilities are increased & Current assets are increased
B
Current assets are decreased & Current liabilities are decreased
C
Current liabilities are decreased & Current assets are increased
D

Explanations

The question refers to when the corporation PAID the dividend, not declared it. After paying it, current assets are decreased and current liabilities are decreased

Pricing