Which of the Following Happens at the Date of Declaration

question 70

Multiple Choice

Which of the following happens at the date of declaration of a cash dividend?

• A)Dr.Dividends Expense,Cr.Dividends Declared
• B)Dr.Dividends Declared,Cr.Cash
• C)Dr.Dividends Declared,Cr.Dividends Payable
• D)The board of directors approves the dividend but no entry is made in the accounts.

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Definitions:

Bank Statement

A document issued by a bank detailing transactions, balances, and other financial information over a period of time for a specific account.

Stale Check

A check that is not presented to a bank within six months of its date.

Properly Payable Rule

A principle in banking law where banks are only obligated to pay checks that are correctly drawn up and meet all legal requirements.

Electronic Fund Transfer

The electronic transfer of money between accounts, facilitated by a network of computers, allowing for quick and secure transactions without the need for physical exchange of cash or checks.