The Board of Directors of Yancey Company Declared a Cash

question 41

Multiple Choice

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2017. The dividend is to be paid on August 15, 2017, to stockholders of record on July 31, 2017. The correct entry to be recorded on July 15, 2017, will include a

• A)debit to Dividends Payable.
• B)debit to Cash Dividends.
• C)credit to Cash.
• D)credit to Cash Dividends.

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Definitions:

Japan

A country located in East Asia, known for its rich culture, technological advancements, and as the world's third-largest economy by nominal GDP.

Negative APS

Refers to a situation where average propensity to save is below zero, indicating that consumption exceeds income, leading to dissavings.

Disposable Income

The net income available to an individual or household after taxes have been deducted, used for savings or spending on goods and services.

Induced Consumption

An increase in spending on goods and services caused by an increase in income, reflecting a direct relationship between income levels and consumer spending.