Which of the Following Correctly Describes the Recording of a Dividend

question 1

Multiple Choice

Which of the following correctly describes the recording of a dividend declaration by a company's board of directors?

• A)A debit to retained earnings and a credit to cash.
• B)A debit to additional paid-in capital and a credit to dividends payable.
• C)A debit to cash and a credit to retained earnings.
• D)A debit to retained earnings and a credit to dividends payable.

---

Definitions:

PERT

An acronym for Program Evaluation and Review Technique, a statistical tool used in project management, designed to analyze and represent the tasks involved in completing a given project.

Pareto Analysis

A method used in quality control and business to identify the few critical causes that account for most of an effect, enabling prioritization of effort.

Project Life Cycle

The series of phases that a project goes through from its initiation to its closure.

Variable Costs

Expenses that vary directly with the level of production or output, such as materials and labor costs.