The Journal Entry to Record the Declaration of Dividends on Common

question 198

True/False

The journal entry to record the declaration of dividends on common stock includes a debit to Retained Earnings and a credit to Common Dividend Payable.

---

Definitions:

Revenues

The income earned from normal business operations and includes discounts and deductions for returned merchandise.

Expenses

Expenses refer to the outflow of money to another person or company to pay for an item or service, or for costs necessary to operate a business.

Owner's Capital

The amount of equity in a company owned by its owner or shareholders, representing the net assets after liabilities have been deducted.

Electronic Repair Revenues

Income generated from services related to fixing and restoring electronic devices and equipment.