At the Date of Declaration of an Ordinary Share Dividend

question 71

Multiple Choice

At the date of declaration of an ordinary share dividend, the entry should not include

• A)a credit to Share Capital-Ordinary.
• B)a credit to Ordinary Share Dividend Distributable.
• C)a debit to Retained Earnings.
• D)All of these are acceptable.

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Definitions:

Customer Order Cycle

The total amount of time it takes from the moment a customer places an order until the product is delivered, including processing, production, and shipping.

Replenishment Cycle

The process and frequency with which inventory is reordered and restocked to maintain sufficient levels.

Order Arrival

The process or moment when a customer's order reaches the seller or when inventory is received by a company from suppliers.

Retail Sale

The selling of goods and services directly to the consumer for personal use, not for resale.