Xyz co paid 1000 in dividends to stockholders how does this

Question

XYZ Co. paid $1,000 in dividends to stockholders. How does this transaction affect the accounts of XYZ?

a. Cash will decrease by $1,000 and retained earnings willdecrease by $1,000

b. Cash will decrease by $1,000 and revenues will increase$1,000

c. Cash will decrease by $1,000 and revenues will decrease$1,000

d. Net income will decrease by $1,000