The Entry to Record the Declaration of a Cash Dividend

question 117

Multiple Choice

The entry to record the declaration of a cash dividend includes a debit to:

• A)Cash and a credit to Dividends Payable.
• B)Retained earnings and a credit to Dividends Payable.
• C)Dividends Payable and a credit to Cash.
• D)Retained Earnings and a credit to Cash.

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Definitions:

Satisfier Factor

Refers to job factors that increase job satisfaction without necessarily diminishing job dissatisfaction when absent, as proposed by Herzberg in his Two-Factor Theory of motivation.

Sense of Achievement

The feeling or satisfaction one experiences upon meeting a goal, completing a task, or accomplishing something of value.

Recognition

The acknowledgment of someone's achievement, effort, or qualities by others.

Need for Personal Power

A psychological drive or motivation for individuals to gain influence or control over others and their environment.