Recording the Payment (As Distinguished from the Declaration)of a Cash

question 27

Multiple Choice

Recording the payment (as distinguished from the declaration) of a cash dividend whose declaration was already recorded will:

• A)decrease both the current ratio and working capital.
• B)have no effect on the current ratio or earnings per share.
• C)increase the current ratio but have no effect on working capital.
• D)increase both the current ratio and working capital.
• E)None of these choices are correct.

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Definitions:

Requirement

A specified necessity or condition that must be fulfilled or complied with.

Goodwill

An intangible asset representing the value of a business's reputation, brand, and customer relationships, beyond its tangible assets.

Organizing Information

The process of arranging data and facts in a structured and logical manner for easy understanding and accessibility.

Personal Relationship

A connection between individuals based on emotional bonds, personal ties, or social associations.