Use the information below to answer the following question(s):Indicate how each event affects the elements of the financial statements. Use the following letters to record your answer in the box shown below each element. Use only one letter for each element. You do not need to enter amounts.Increase = I Decrease = D No Effect = NA(Note that "No Effect" means that the event does not affect that element of the financial statements or that the event causes an increase in that element and is offset by a decrease in that same element.) Vancouver Co. paid a $50,000 cash dividend to its shareholders two months after Vancouver declared the dividend.
What will be an ideal response?
(D) (D) (NA) (NA) (NA) (NA) (D)
Paying a dividend that was declared at an earlier date decreases assets (cash) and decreases liabilities (dividends payable). It is reported as a cash outflow in the financing activities section of the statement of cash flows.
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Indicate whether the statement is true or false