When a Dividend Is Declared, but Unpaid at the End

question 44

True/False

When a dividend is declared, but unpaid at the end of a financial year, credit consolidation adjustments are required against both the dividend declared and dividend receivable account.

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Definitions:

Compound-Interest GIC

A Guaranteed Investment Certificate (GIC) that grows by earning interest on the principal and the accumulated interest over time.

Percent Increase

The proportionate growth of a value over time, expressed as a percentage of the initial amount.

Successive Years

A term used to describe years that follow one after another without interruption.

Loan

A borrowed amount of money that is to be repaid along with interest.