At the End of the Year a Company Declared a Final

question 1

Multiple Choice

At the end of the year a company declared a final cash dividend out of its retained earnings. Which of the following is the journal entry to record the declaration?

• A) Dr Cash; Cr Final dividend payable
• B) Dr Final dividend payable; Cr Cash
• C) Dr Share capital; Cr Final dividend payable
• D) Dr Retained earnings; Cr Final dividend payable

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Definitions:

Accelerate Costs

Costs that increase at a rate faster than usual, often due to rapid growth or expansion activities.

Delay Sales

A strategy or situation in which the sale of goods or services is postponed to a later time, possibly in anticipation of more favorable market conditions or prices.

Encrypted Servicing

The process of providing services through secure, encrypted communications to protect sensitive information.

Faulty Design

Describes a product, structure, or system that has inherent flaws or errors in its design, leading to inefficiency, malfunction, or potential hazards.