Indicate how each event affects the elements of 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 = IDecrease = DNo Effect = NVancouver Co. paid a $50,000 cash dividend to its shareholders on July 5, Year 1, which was 2 months after Vancouver declared the dividend.AssetsLiabilitiesEquityRevenuesExpensesNetIncomeCash Flow? ?????

What will be an ideal response?


(D) (D) (N) (N) (N) (N) (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 from financing activities.

Business

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What will be an ideal response?

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