Which of the Following Happens at the Date of Declaration

question 70

Multiple Choice

Which of the following happens at the date of declaration of a cash dividend?

• A)Dr.Dividends Expense,Cr.Dividends Declared
• B)Dr.Dividends Declared,Cr.Cash
• C)Dr.Dividends Declared,Cr.Dividends Payable
• D)The board of directors approves the dividend but no entry is made in the accounts.

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Definitions:

Credit Terms

Conditions under which credit is extended by a seller to a buyer, detailing the repayment period, interest rate, and penalties for late payment.

Discount

A reduction in the price of goods or services, usually offered to encourage purchase or provided for early payment.

Sales Tax

A tax imposed by a government on the sale of goods and services.

Credit Period

Length of time allowed for payment of goods sold on account.