A Company's Board of Directors Votes to Declare a Cash

question 36

Multiple Choice

A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. The journal entry to record the payment of the cash dividend is:

• A) Debit Common Dividend Payable $12,000; credit Retained Earnings $12,000.
• B) Debit Dividend Expense $12,000; credit Cash $12,000.
• C) Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000.
• D) Debit Common Dividend Payable $12,000; credit Cash $12,000.
• E) Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000.

Interpret the structure of process paragraphs.

Learn how to prepare and execute a plan.

Grasp the concept of moral and personal development stages.

Understand emergency procedures and their step-by-step execution.

---

Definitions:

Federal District Court

is a general trial court of the United States federal court system that has both original jurisdiction over federal cases and questions involving federal law.

Removal

The act of transferring a case from one court to another, typically from a state court to a federal court in the legal context.

Nerve Center

The core location or facility from which the control and coordination of activities are directed, often used in the context of business operations or network operations.

Subject-Matter Jurisdiction

The power of a court to adjudicate cases of a certain nature or those pertaining to a specified subject area.