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ABC Company distributes a $2,000 cash dividend to the stockholders. What is the effect on...

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Accounting

ABC Company distributes a $2,000 cash dividend to the stockholders. What is the effect on the
accounting equation?
A. Assets decrease by $2,000 and equity decreases by $2,000.
B. Assets decrease by $2,000 and liabilities decrease by $2,000.
C. Assets increase by $2,000 and equity increases by $2,000.
D. The amount of total assets remains the same.
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