On December 15, 2013, the Board of Directors of Cross

question 42

Multiple Choice

On December 15, 2013, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2014 of $.80 per share on the 2,000,000 common shares outstanding. On December 15, 2013, Cross Corporation should

• A) not prepare a journal entry because the event had no effect on the corporation's financial position until 2014.
• B) decrease retained earnings $1.6 million and increase expenses $1.6 million.
• C)decrease retained earnings $1.6 million and increase liabilities by $1.6 million.
• D)decrease cash $1.6 million and decrease retained earnings $1.6 million.

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Definitions:

Patent Laws

Legal statutes that grant inventors exclusive rights to their inventions, preventing others from making, using, or selling the invention for a certain period of time.

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Regulations that protect the exclusive rights of creators over their original works, including the right to reproduce, distribute, and adapt these works.

Profit-Maximization

A method used by businesses to determine the sale price and production level that lead to the highest possible profit.

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