Fischers, Inc

question 114

Multiple Choice

Fischers, Inc. paid $1,200 of dividends. The journal entry would require:

• A)debit to Cash, credit to Dividends
• B)debit to Dividends, credit to Cash.
• C)debit to Dividends, credit to Accounts Payable
• D)debit to Accounts Payable, credit to Dividends

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Definitions:

Cost of Land

The purchase price and all associated costs, such as legal fees and surveying, of acquiring land for business use.

Asset's Cost

The total amount of money or the value exchanged to acquire, maintain, improve, or replace an asset.

Intended Use

The purpose for which a product or service is specifically designed or for which it is intended to be used.

Average Total Assets

Average total assets are calculated by taking the sum of total assets at the beginning and end of an accounting period, then dividing by two, used for analyzing a company's asset efficiency.