Which of the Following Would Be Included in the Entry

question 52

Multiple Choice

Which of the following would be included in the entry to record the payment of a previously declared dividend of $0.25 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)Retained Earnings would be credited for $3,125.
• D)Dividends Payable would be debited for $3,125.

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Definitions:

Operating Activities

Activities related to the day-to-day business operations, including cash flows from selling goods and services, and paying for expenses.

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in the form of cash.

Net Income

The total earnings of a company after subtracting all expenses, including taxes, from its total revenues.

Indirect Method

Indirect Method is a way of preparing the cash flow statement where net income is adjusted for non-cash transactions, changes in working capital, and other items to calculate cash flow from operating activities.