Use the Following Information for Questions

question 59

Multiple Choice

Use the following information for questions.
On July 15, 2018, the board of directors of George Easton Limited declared a cash dividend of $0.50 per share on 84,000 common shares. The dividend is to be paid on August 15, 2018, to shareholders of record on July 31, 2018.
-The effects of the journal entry to record the declaration of the dividend on July 15, 2018, are to

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

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Definitions:

Control Process

A systematic approach to managing and regulating the activities and operations within an organization to ensure they meet set objectives.

External Control

The perception that one's behavior and outcomes are influenced or determined by forces outside one's personal control.

Control Systems

Mechanisms and processes put in place to monitor, manage, and regulate the behavior and performance of an organization or system.

Types of Control

Various methods or systems used within an organization to regulate processes, manage resources, and guide the actions towards achieving objectives, such as bureaucratic, market, and clan control.