On January 1, Swanson Corporation Had 80,000 Ordinary Shares with a €10

question 272

Multiple Choice

On January 1, Swanson Corporation had 80,000 ordinary shares with a €10 par value outstanding. On March 17, the company declared a 15% share dividend to shareholders of record on March 20. Market value of the shares was €13 on March 17. The entry to record the transaction of March 17 would include a

• A) credit to Cash Dividends for €36,000.
• B) credit to Cash for €156,000.
• C) credit to Ordinary Share Dividends Distributable for €120,000.
• D) debit to Ordinary Share Dividends Distributable for €120,000.

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Definitions:

Rationalization

Is the application of the most efficient means to achieve given goals and the unintended, negative consequences of doing so.

Globalization

The process by which businesses, technologies, or philosophies spread throughout the world, leading to increased interconnectedness and interdependence among nations.

Glocalization

Is the simultaneous homogenization of some aspects of life and the strengthening of some local differences under the impact of globalization.

Homogenization

The process of making things uniform or similar, often seen in cultures losing distinct features due to globalization.