Using the Following Accounts

question 27

Multiple Choice

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transactions.
-Declared a cash dividend.
Debit ________ Credit ________

• A)Cash
• B)Dividends payable
• C)Preferred stock
• D)Common stock
• E)Common Stock dividend distributable
• F)Paid-in capital in excess of par value-common
• G)Paid-in capital in excess of par value - preferred
• H)Paid-in capital from treasury stock
• I)Retained earnings
• J)Treasury stock
• K)Paid-in capital in excess of par value-Stock dividend

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Definitions:

Equipment

Tangible, long-term assets used in the operation of a business, not intended for resale, such as machinery, office furniture, and computers.

Hedging Reserve

A financial reserve established to offset potential losses or gains due to future price or currency fluctuations, often related to commodity or foreign exchange hedging.

Capital Reserve

Funds set aside from a company's profits for future investments or to cover anticipated liabilities or losses.

U.S.GAAP

United States Generally Accepted Accounting Principles, which are the set of accounting standards used for financial reporting in the U.S.