Failure to Record the Declaration and Distribution of a Share

question 50

Multiple Choice

Failure to record the declaration and distribution of a share dividend would

• A)Have no effect on total equity
• B)Cause the outstanding shares to exceed the equity
• C)Cause an understatement of equity
• D)Cause an overstatement of equity
• E)Cause the balance sheet to be out of balance

---

Definitions:

Energy Diagram

A graphical representation of the energy levels of reactants and products during a chemical reaction.

Endothermic Processes

Chemical or physical processes that absorb heat energy from the surrounding environment.

Heat

A form of energy associated with the movement of atoms or molecules and capable of being transmitted through solid and fluid media by conduction, convection, or radiation.

Flashover

Flashover is a phenomenon in fire dynamics where nearly simultaneous ignition of all combustible materials in an enclosed area occurs, drastically increasing the fire spread and intensity.