A company pays out a previous declared common stock dividend. What is its effect on the cash?

sure>>>>>>>>>>>>>>>>>a. It will decrease

When a company pays out previous declared dividend, the cash will decrease at the same time the liability of dividend to be payable from the balance sheet will will get reduced. 

The correct option is : 

A . It will decrease .

The decision to announce the distribution of profits from the difficult decisions taken by management and the task that

In the company, because of this decision it has a direct impact on the investor and the company, as the main objective

Any investor is to achieve profits, many investors seeking to make a profit are underway

The result of the distribution process, and that the administration should strike a balance between dividends and profits

Retained, especially in the new and developing companies that are in need of funding, from here to discuss

The impact of this research announcement of the dividend on the stock market and the quantities of the stock price

Traded in the market.

It depends on the date of the announcement of the earnings distribution

d. Depends on the dividend date

the cash will be decreased.

at firist we need the impact on cash

it will be decreases because there are an amount go out of the cash to pay to the dividend

the correct answer i (a) decreses

but Mr georgie's answer is  correct in the case of needed the general impact

thus his explaination is useful in my openion

thanks for all

A company pays out a previous declared common stock dividend. What is its effect on the cash?

 a. It will decrease

The effect is being sought after the company "Pays". Thats why, in my opinion, the cash must decrease.

I think the answer should be (A).

The journal entry will be :

Debit / dividend payable account

Credit / cash account 

Since it was previously declared so the Dividend Pyable account will be debited and the Cash account will be credited. Hence cash will decrease.

 a. It will decrease

Impact be on the cash account irrespective of the date whenever a cash distribution