Use the Following Information for Questions

question 109

Multiple Choice

Use the following information for questions
On July 15, 2015, the board of directors of George Easton Limited declared a cash dividend of $0.50 per share on 84,000 common shares.The dividend is to be paid on August 15, 2015, to shareholders of record on July 31, 2015.
-The effects of the journal entry to record the payment of the dividend on August 15, 2015, are to

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

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Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

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