A paid dividends does what?

a)decrease assets and stockholders' equity
b)increase assets and stockholders' equity
c)increase assets and decrease stockholders' equity
d)decrease assets and increase stockholders' equity

Please help:confused:

I think answer is A.
When you paid dividents you decrease asset (Cash - Credit) and decrease stockholders' equity (Divitents - Debit).
Actually, dividents are declared on one day and paid on a later date.
So you will have two transactions:
1. Dividents - Debit (Stockholders' Equity)
Dividents Payable - Credit (Liability)
2. Dividents Payable - Debit (Liability)
Cash - Credit (Asset)