Dividend received is a/an for the business entity, and the value of liabilities will in the accounting equation.
A
income
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
expense
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
increase
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
decrease
No worries! We‘ve got your back. Try BYJU‘S free classes today!
E
not change
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution
The correct options are A income E not change Dividend received by a business entity is an income for them, and therefore it will increase the value of assets and capital in the accounting equation, and there will be no change in the value of liabilities.