The Entry to Close the Dividend Account Includes

question 54

Multiple Choice

The entry to close the Dividend account includes:

• A)a debit to Common Stock and a credit to Dividends.
• B)a debit to Dividends and a credit to Retained Earnings.
• C)a debit to Dividends and a credit to Common Stock.
• D)a debit to Retained Earnings and a credit to Dividends.

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Definitions:

Profit Sharing

A corporate policy where employees receive a share of the company's profits, typically as part of their compensation package.

Wealth Redistribution

The transfer of income and wealth from certain individuals or groups to others through mechanisms like taxation, charity, or welfare policies, aiming at economic equality.

Mandated By Law

Requirements or actions that are legally imposed and regulated by legislation, which individuals or entities must comply with.

Host-Based Pay

Expatriate pay comparable to that earned by employees in a host country.