A Company Declared and Paid Dividends of $1800

question 117

Multiple Choice

A company declared and paid dividends of $1800. How does this transaction affect the accounting equation?

• A)Add $1800 to Revenue and add $1800 to Cash.
• B)Add $1800 to Dividends and add $1800 to Accounts Receivable.
• C)Subtract $1800 from Retained Earnings and subtract $1800 from Cash.
• D)Add $1800 to Dividend Expense and subtract $1800 from Cash.

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Definitions:

Exporting Nation

A country that sells goods and services to other countries, resulting in a net inflow of funds from international trade.

Product Price

The amount of money required to purchase a particular good or service.

World Trade Organization

An intergovernmental organization that regulates international trade with the aim of ensuring that trade flows as smoothly, predictably, and freely as possible.

Trade Barriers

Measures such as tariffs, quotas, and regulations that governments use to control the amount and type of goods and services imported or exported.