When are assets affected after a company declares a cash dividend?

The correct answer, which states that assets are affected when cash is paid out, reflects the timing of the impact on a company's financial statements due to cash dividends.

When a company declares a cash dividend, it creates a liability on the balance sheet, representing the amount owed to shareholders. However, the actual reduction in assets occurs only when the cash is disbursed to shareholders. At that point, the company's cash account decreases, which is a direct reduction in assets. The declaration itself does not immediately affect the cash account; it simply establishes the obligation to pay the dividend.

The other options do not accurately represent the timing of asset impact. The declaration does not trigger an asset change until the payment takes place. Similarly, the timing after the quarter closes or any profit-related conditions do not influence when the cash assets are impacted, as they are contingent on when the cash is actually distributed. Thus, the understanding of cash flow timing in relation to dividends is crucial for evaluating a company's financial activity.