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Which of these is a true statement? Dividends reduce the amount of retained earnings when paid out. The declaration is reflected as a reduction of

Which of these is a true statement?

Dividends reduce the amount of retained earnings when paid out.

The declaration is reflected as a reduction of cash dividend payable and an increase in retained earnings.

The cash dividend payable account is a liability and is normally shown in the current liabilities section of the balance sheet.

None of the above.

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