The Board of Marpa, Inc

question 77

Multiple Choice

The board of Marpa, Inc. declared a $3 per share cash dividend on common stock. The corporation has 5,000 shares of common stock outstanding. The entry required to declare the dividend is:

• A) debit Cash; credit Common Dividends Payable.
• B) debit Cash Dividends; credit Common Dividends Payable.
• C) debit Common Dividends Payable; credit Cash.
• D) debit Retained Earnings; credit Dividends Payable.

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Definitions:

Customer Base

The group of consumers who repeatedly purchase the goods or services of a business, fundamentally driving its revenue.

Market-Creating Innovation

Innovations that introduce new products or services, creating new demand and potentially new markets.

Lower-Income Segment

A portion of the population or market characterized by lower earnings, often targeted by businesses offering more affordable products or services.

Developing Economies

Countries that are in the process of industrialization, with relatively low per capita income and seeking to improve their economic base.