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 = NFort Worth Co. declared a cash dividend but has not yet paid the money to the shareholders.AssetsLiabilitiesEquityRevenuesExpensesNetIncomeCash Flow? ?????
What will be an ideal response?
(N) (I) (D) (N) (N) (N) (N)
Declaring a cash dividend increases liabilities (dividends payable) and decreases equity by increasing dividends. It is reported as a cash outflow from financing activities only when it is eventually paid.
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In determining the critical value of the test statistic, the area to the right of the critical value is either ? or ?/2. It is ? for a one-tail test and ?/2 for a two-tail test
Indicate whether the statement is true or false
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A. Option A B. Option B C. Option C D. Option D