What will be the impact in accounting equation when dividend is received from a company?

Assets - Decrease
Liabilities - No effect
Capital - Decrease

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Assets - No effect
Liabilities - Decrease
Capital - Increase

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Assets - Increase
Liabilities - No effect
Capital - Increase

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None of these

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Solution

The correct option is C
Assets - Increase
Liabilities - No effect
Capital - Increase

When dividend is received, it will increase cash which is an asset and since it is a revenue it will increase the capital.

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Similar questions

Give an example for each of the following types of transaction.
(i) Increase in one asset, decrease in another asset.
(ii) Increase in asset, increase in liability.
(iii) Increase in asset, increase in owner's capital.
(iv) Decrease in asset, decrease in liability.
(v) Decrease in asset, decrease in owner's capital.
(vi) Decrease in liabilities, increase in owner's capital.
(vii) Increase in one liability, decrease in another liability.
(viii) Increase in liabilities, decrease in owner's capital.

Q. Give one example of each of the following transactions:
(i) Increase in an asset and a liability.
(ii) Decrease in an asset and a liability.
(iii) Increase in assets and capital.
(iv) Decrease in assets and capital.

If the total liabilities of a business decrease by Rs 5000 what will be the effect on total assets? (assuming the amount of capital remain same).

Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation

$\begin{matrix} Transaction & Amount (Rs.) a. Started business with cash & 1,20,000 b. Rent received & 10,000 c. Invested in shares & 50,000 d. Received dividend & 5,000 e. Purchased goods on credit from Ragini & 35,000 f. Paid cash for household expenses & 7,000 g. Sold goods for cash (costing Rs. 10,000) & 14,000 h. Cash paid to Ragini & 35,000 i. Deposited into bank & 20,000 \end{matrix}$

Which statement shows the increase and decrease in various assets, liabilities and capital in two or more balance sheets of the same business enterprise on different dates?

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What will be the impact in accounting equation when dividend is received from a company?

The correct option is C Assets - Increase Liabilities - No effect Capital - Increase When dividend is received, it will increase cash which is an asset and since it is a revenue it will increase the capital.

The correct option is C
Assets - Increase
Liabilities - No effect
Capital - Increase

When dividend is received, it will increase cash which is an asset and since it is a revenue it will increase the capital.