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? The basic accounting equation is spelled out while ets equal liabilities plus owner' equity. When dividends are paid, the payment is made out of the equity account ? How do dividends effect the accounting equation? Answer: The accounting equation is ets = Liabilities Paidin Capital side of the Only one side of the accounting equation will be affected when one else dividend is that will affect only the right side of the accounting Effect onwards Retained Earnings: Net Income (loss) Increase (decrease) Disutions else dividends: Decrease: Effect of a Dividend onwards the Accounting Equation. Index |
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