QUESTION 13

1. A company declared a cash dividend on its common stock on December 15 of the previous year, payable on January 12 of the current year. How would this dividend affect stockholders' equity on the following dates?

   December 15, previous year

   December 31, previous year

   January 12, current year

   		Decrease, No effect , Decrease
   		Decrease, No effect, No effect
   		No effect, Decrease, No effect
   		No effect, No effect, Decrease