The Board of Directors of Yancey Company Declared a Cash

question 211

Multiple Choice

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2020.The dividend is to be paid on August 15, 2020, to stockholders of record on July 31, 2020.The effects of the journal entry to record the declaration of the dividend on July 15, 2020, are to

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

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Definitions:

Energy Storage

The process of retaining energy produced at one time for use at a later stage, common forms include chemical, kinetic, and potential energy storage.

Insulator

A material or object that does not easily allow heat, electricity, or sound to pass through it.

Collagen Fibers

Strong, fibrous proteins found in connective tissue, including skin, tendons, and ligaments, providing structural support and strength.

Extracellular Matrix

A complex network of proteins and carbohydrates surrounding cells, providing structural and biochemical support to tissues.