In 2017,Dickens Company Had a Beginning Balance in Its Cash

question 76

Multiple Choice

In 2017,Dickens Company had a beginning balance in its Cash Dividend Payable account of $5,000 and an ending balance of $4,000.During 2017,the only dividends Dickens declared were $46,000 in cash to the common stockholders.How much cash was paid to the common stockholders?

• A)$45,000
• B)$47,000
• C)$46,000
• D)$1,000

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds; it is the price paid for the use of borrowed money.

Carrying Value

The amount at which an asset is recognized in the balance sheet, subtracting any accumulated depreciation or amortization.

Maturity

The date on which a financial instrument or obligation becomes due and is to be paid or settled.

Face Value

The nominal value printed on a bond or stock certificate, representing its legal value.