When a company pays a dividend the: Group of answer choices Dividend Paid account will increase with a debit. Dividends Paid account will be increased with a credit. Retained Earnings account will be directly increased with a credit. Dividends Paid account will be decreased with a debit.

The Dividends Paid account: Group of answer choices normally has a credit balance. increases equity. is increased with debits and decreased with credits. is not a proper sub-account of equity.

Dividends paid: Group of answer choices increase assets. increase expenses. decrease revenues. decrease retained earnings.

Dividend policy of a firm is governed by:(i) Long Term Financing Decision:As we know that one of the financing options is ‘Equity’. Equity can either be raisedexternally through issue of new equity shares or can be generated internally throughretained earnings. For Equity, retained earnings are preferable because they do notinvolve any floatation costs (issue expenses).But whether to retain or distribute the profits, forms the basis of this decision.Further, payment of cash dividend reduces the amount of funds required to financeprofitable investment opportunities thereby restricting its financing options.In this backdrop, the decision is based on the following:1. Whether the organization has opportunities in hand to invest the profit,if retained?2. Whether the return on such investment (ROI) will be higher than theexpectations of shareholders i.e. Ke?

Dividends paid: a. decrease revenues. b. decrease equity. c. increase liability. d. increase expenses.

A dividend is that part or portion of the profits of a corporation set aside, declared and ordered by the directors to be paid to the stockholders on demand or at a fixed time.Group of answer choicesTrueFalse