During the Month of October, Ford Advertised on the Internet

question 160

Multiple Choice

During the month of October, Ford advertised on the Internet. Ford received the bill for $600 in October, but waited until November to pay the advertising expense. The journal entry to record the payment in November is

• A) Accounts Payable debit; Cash credit.
• B) Advertising Expense debit; Accounts Payable credit.
• C) Advertising Expense debit; Cash credit.
• D) A journal entry is not made in November.

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Definitions:

Dividend Increase

An action by a company to increase the amount of dividends distributed to its shareholders.

Market Rate of Return

The average rate of return that investors expect to earn in the market on an investment, reflecting the risk and liquidity of the asset.

Annual Dividend

The total payment received from a stock or other investment security over the span of a year, often distributed quarterly by the issuing company.

Dividend Increase

An action by a company to raise the amount of dividends paid to its shareholders.