Use the Following Information for Questions

question 123

Multiple Choice

Use the following information for questions
On July 15, 2012, 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, 2012, to shareholders of record on July 31, 2012.
-The effects of the journal entry to record the declaration of the dividend on July 15, 2012, are to

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

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Definitions:

Contingency Leadership

A theory of leadership that suggests the effectiveness of a particular style of leadership is contingent upon the context and situation at hand.

Leader's Behavior

The actions and mannerisms exhibited by an individual in a leadership position, influencing how they manage and interact with their team.

Situation

A set of circumstances or context in which events occur, impacting how they are perceived or managed.

Path-Goal Theory

A leadership theory that states the leader's job is to assist followers in attaining their goals and to provide direction or support ensuring their goals are compatible with the objectives of the group or organization.