Final answer:
Payment of cash dividends by Hansen Enterprises decreases both assets and retained earnings. It does not affect the common stock or liabilities.
Step-by-step explanation:
When Hansen Enterprises paid cash dividends to the stockholders, this transaction decreased assets, specifically the cash account, as the company paid out money to its stockholders.
It also decreased the retained earnings, which represent the cumulative profit of the company that has not been distributed to the stockholders and is not allocated for other purposes such as capital investments.
The accounts affected by the payment of dividends are not common stock or liabilities. Common stock represents the equity ownership interest in the company and does not change when dividends are paid, while liabilities refer to the company's debts and obligations, which are also unaffected by dividend payments.