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Question

Dividend received is a/an for the business entity, and the value of liabilities will in the accounting equation.

A
income
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B
expense
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C
increase
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D
decrease
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E
not change
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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.

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