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When a company pays a previously declared cash dividend on its common stock, which of the following is correct? assets, liabilities, and stockholders' equity do

When a company pays a previously declared cash dividend on its common stock, which of the following is correct?

assets, liabilities, and stockholders' equity do not change.

assets do not change, liabilities increase, and stockholders' equity decreases.

no journal entry is required

assets decrease, liabilities decrease, and stockholders' equity does not change.

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