The Board of Directors of Yancey Company Declared a Cash

question 80

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 effects of the journal entry to record the declaration of the dividend on July 15, 2017, are to

• A)decrease stockholders' equity and increase liabilities.
• B)decrease stockholders' equity and decrease assets.
• C)increase stockholders' equity and increase liabilities.
• D)increase stockholders' equity and decrease assets.

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Definitions:

Contextual Performance

Refers to tasks an employee does on the job that are not required as part of the job but that still benefit the organization in some way.

Ethics

Refers to an individual’s beliefs about what is right and wrong and what is good and bad. Ethics are formed by the societal context in which people and organizations function.

Interactional Justice

A concept in organizational behavior regarding the treatment individuals receive as decisions are made, emphasizing dignity and respect.

Procedural Justice

The concept that fair and transparent processes are crucial in legal and organizational decisions, promoting trust and respect.