The Dividends Account

question 88

Multiple Choice

The dividends account

• A) Is increased with a credit entry
• B) Is decreased with a debit entry
• C) Normally has a credit balance
• D) Normally has a debit balance

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Definitions:

Corporation's Charter

A legal document that establishes a corporation, outlining its structure, operations, and objectives, issued by a governmental or other authorized entity.

Articles of Incorporation

Official papers submitted to a government agency for the purpose of officially registering the formation of a corporation.

Mutual Agency

Act of a single partner is binding on all members of the partnership.

Raising Capital

The process of obtaining funds to finance business activities, which can be done through equity, debt, or other financial instruments.