Which of the Following Would Be Included in the Entry

question 72

Multiple Choice

Which of the following would be included in the entry to record the payment of a previously declared dividend of $.25 per share on 12,500 shares of common stock?

• A) Retained earnings would be debited for $3,125.
• B) Cash would be debited for $3,125.
• C) Dividends payable would be credited for $3,125.
• D) Dividends payable would be debited for $3,125.

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Definitions:

Mergers

The combination of two or more companies into one, where one corporation is completely absorbed by another corporation.

Sherman Act

A federal statute that prohibits monopolistic business practices and promotes competition.

Injunctions

are judicial orders that restrain a person from beginning or continuing an action threatening or invading the legal right of another, or that compel a person to carry out a certain act, like repairing a nuisance.

Remedies

Legal means for enforcing rights or compensating harm due to the breach of a legal duty.