A company's assets and liabilities both decrease when a previously declared cash dividend is paid.

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Dylan Legend123 · Accepted Answer

Final Answer : True, Explanation :  When a company declares a cash dividend, it reduces the retained earnings and increases the dividend payable liability. When the dividend is paid, the company decreases its cash account and reduces the dividend payable liability, resulting in a decrease in both assets and liabilities.

A company's assets and liabilities both decrease when a previously declared cash dividend is paid.

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