A Corporation Declares a Dividend of

question 65

Multiple Choice

A corporation declares a dividend of $.75 per share on 12,500 shares of common stock. Which of the following would be included in the entry to record the declaration?

• A) Retained earnings would be debited for $9,375.
• B) Paid-in capital in excess of par would be credited for $9,375.
• C) Retained earnings would be credited for $9,375.
• D) Dividends payable would be debited for $9,375.

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Definitions:

Intrapreneurship

The practice of fostering an entrepreneurial spirit within an existing company, encouraging employees to pursue innovative projects.

Profitable New Products

Goods or services recently introduced to the market that generate earnings exceeding their cost of production.

Larger Organisation

An organization that is significant in size, possibly with multiple departments, a wide range of functions, and a large number of employees.

Minority Owned Business

A business that is at least 51% owned, operated, and controlled by individuals belonging to a racial or ethnic minority group.