In February, 2011, Despot declared cash dividends of $12 million to be paid in April of that year. What effect did the April transaction have on Despot's accounts?

In February, 2011, Despot declared cash dividends of $12 million to be paid in April of that year. What effect did the April transaction have on Despot's accounts? 



A. Decreased assets and liabilities.
B. Decreased assets and shareholders' equity.
C. Increased liabilities and decreased shareholders' equity.
D. None of the above is correct.




Answer: A


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