The Board of Directors of Benson Company Declared a Cash

question 53

Multiple Choice

The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2014. The dividend is to be paid on August 15, 2014, to stockholders of record on July 31, 2014. The effects of the journal entry to record the payment of the dividend on August 15, 2014, are to

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

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Definitions:

Contribute Resources

involves providing or dedicating assets or capabilities, such as time, money, or expertise, to support a project, initiative, or cause.

Angel Investor

A wealthy individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Life Cycle

The series of stages through which something (such as a product, organization, or project) passes during its lifetime, from inception to termination.

Entrepreneurial Organisations

Companies characterized by innovative practices, proactive engagement with marketplace opportunities, and a willingness to take risks for growth.