Flow charts depict ________________

A company declared and paid dividends of $1800. How does this transaction affect the accounting equation?

A) Add $1800 to Revenue and add $1800 to Cash. B) Add $1800 to Dividends and add $1800 to Accounts Receivable. C) Subtract $1800 from Retained Earnings and subtract $1800 from Cash. D) Add $1800 to Dividend Expense and subtract $1800 from Cash.

The leverage ratio is equal to average total ________ divided by average ________

A) debt; total assets B) debt; common stockholders' equity C) long-term debt; common stockholders' equity D) assets; common stockholders' equity