Which of the Following Entries Records the Payment of Dividends

question 152

Multiple Choice

Which of the following entries records the payment of dividends?

• A) debit Common Stock; credit Cash
• B) debit Dividends; credit Cash
• C) debit Salaries Expense; credit Cash
• D) debit Salaries Expense; credit Salaries Payable

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Definitions:

Other Expenses

Costs not directly related to the primary business activities, such as interest expense or losses from asset sales.

Spending Variance

The difference between the actual amount spent and the budgeted or forecasted amount, often analyzed for cost control purposes.

Medical Supplies

Items used in the healthcare field to diagnose, treat, or care for patients.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular account.