A Mining Company Declared a Liquidating Dividend

question 85

Multiple Choice

A mining company declared a liquidating dividend. The journal entry to record the declaration must include a debit to

• A) Retained Earnings.
• B) a paid-in capital account.
• C) Accumulated Depletion.
• D) Accumulated Depreciation.

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Definitions:

Competition Act

Legislation designed to promote fair business practices and protect consumers by preventing monopolies and promoting competition.

Bid-rigging

A form of fraud in which competitors agree in advance who will win a bidding process, thus undermining the competition.

Misleading Advertising

Advertising that deceives or is likely to deceive the consumer, often leading to an incorrect understanding or decision.

Competition Act

A law designed to preserve and promote competition and to protect consumers from anti-competitive practices by companies.