When the Board Declares Dividends,the Correct Journal Will Be

question 10

Multiple Choice

When the board declares dividends,the correct journal will be

• A)Dividends Expense Dividends Payable
• B)Dividend Declared Cash
• C)Dividends Declared Dividends Payable
• D)Dividends Receivable Dividends Revenue

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Definitions:

Expenses

Costs incurred by a business in the process of earning revenue.

Revenues

Total financial earnings of a company derived from its key operational processes, including the sale of products or services.

Equity

The value of the shares issued by a company, representing the ownership interest in the company's assets after liabilities are subtracted.

Accounts Payable

The short-term liabilities or obligations a company owes to its suppliers or creditors for goods and services received.