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Question Practice

What will be the impact on the accounting equation if dividends are paid out to shareholders?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 11
Accountancy
Financial Accounting - I
Recording of Transactions - I
Question Bank

What will be the impact on the...

Single Answer MCQ
Q-00053915

What will be the impact on the accounting equation if dividends are paid out to shareholders?

1

Assets decrease and Liabilities increase

2

Assets decrease and Capital decreases

3

Liabilities decrease and Capital increases

4

Assets increase and Capital increases

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