Which of the Following Is the Appropriate General Journal Entry

question 12

Multiple Choice

Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

• A) Retained Earnings
• Cash
• B) Cash Dividends Payable
• Cash
• C) Paid-In Capital
• Cash Dividends Payable
• D) Cash Dividends
• Cash Dividends Payable

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Definitions:

Variable Costing

This costing method includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Variable Production Costs

Costs that vary directly with the level of production output, such as raw materials andDirect labor.

Product Costs

Costs that are incurred to create a product that includes direct materials, direct labor, and manufacturing overhead.

Segment Margin

The amount of profit or loss generated by a specific division or segment of a company, excluding common costs shared across segments.