Declaration of a Cash Dividend Was Recorded by Debiting Operations

question 61

Multiple Choice

Declaration of a cash dividend was recorded by debiting Operations Expense and crediting Cash.This error would cause:

• A)the period end assets to be overstated.
• B)the period end liabilities to be overstated.
• C)the period end stockholders' equity to be understated.
• D)None of the above are correct.

---

Definitions:

Materials Handing

The process of moving, safeguarding, storing, managing, and overseeing materials and goods during production, storage, distribution, usage, and disposal.

Wholesaling Functions

Activities involved in selling goods in large quantities at lower prices to retailers or other businesses for resale.

Customer Service

The support and assistance provided by a company to its customers, often aimed at enhancing satisfaction, resolving issues, and fostering loyalty.

Dependability

The quality of being trustworthy and reliable, essential for establishing long-term relationships in personal and professional contexts.