On February 16,a Company Declares a 68¢ Dividend to Be

question 92

Multiple Choice

On February 16,a company declares a 68¢ dividend to be paid on April 5.There are 950,000 shares of common stock issued and outstanding.The entry recorded by the company on April 5 includes a debit to:

• A) A debit to Dividends Payable and a credit to Cash for $680,000.
• B) A debit to Dividends and a credit to Dividends Payable for $646,000.
• C) A debit to Dividends Payable and a credit to Cash for $646,000.
• D) A debit to Dividends and a credit to Dividends Payable for $680,000.

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Definitions:

Cash Economy

An economic system where transactions are conducted with the direct exchange of physical currency, as opposed to digital or credit transactions.

Modernization Theory

A theory that suggests societies progress through a series of stages of economic development, from traditional to modern.

Economic Development

A process by which a nation improves the economic, political, and social well-being of its people.

Environmental Degradation

The deterioration of the natural environment due to human activity, leading to the depletion of resources and loss of biodiversity.