A Company Declares a Dividend of $0

question 26

Multiple Choice

A company declares a dividend of $0.75 per share on 11,000 ordinary shares.Which of the following would be included in the entry to record the declaration?

• A)Dividends payable,ordinary would be debited for $8250
• B)Ordinary share capital would be credited for $8250
• C)Retained earnings would be credited for $8250
• D)Retained earnings would be debited for $8250

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Definitions:

Industrial Unions

Unions that organize workers across various trades and crafts within an industry to conduct collective bargaining.

Craft Unions

Labor unions representing workers with specific skills or crafts, often in the same or related industries.

Nominal Wages

Wages that are paid to workers in current dollars, without adjustment for inflation.

Price Level

A measure of the average of current prices across the entire spectrum of goods and services produced in the economy.