The Entry to Record the Declaration of a Cash Dividend

question 76

Multiple Choice

The entry to record the declaration of a cash dividend includes a debit to:

• A)Dividends Payable and a credit to Cash.
• B)Retained Earnings and a credit to Cash.
• C)Retained earnings and a credit to Dividends Payable.
• D)Cash and a credit to Dividends Payable.

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Definitions:

Time Sensitive

This term describes situations, operations, or processes that are highly dependent on the duration or timing in which they occur, necessitating prompt or precise scheduling.

Inventory Upstream

Refers to the inventory held by suppliers and manufacturers before it is distributed down the supply chain to the end consumer.

Safety Inventory

Extra inventory held to protect against stockouts caused by variability in demand or supply.

Supply Chain

The network of manufacturers, suppliers, and logistics providers that work together to produce and deliver products to consumers.