A Corporation Declares a Dividend of $0

question 242

Multiple Choice

A corporation declares a dividend of $0.50 per share on 18,000 shares of common stock.Which of the following is included in the entry to record the declaration?

• A) Cash Dividends is debited for $9000.
• B) Paid-In Capital in Excess of Par-Common is credited for $9000.
• C) Cash Dividends is credited for $9000.
• D) Dividends Payable-Common is debited for $9000.

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Definitions:

Good Y

A generic term used in economic models to represent a specific type of product or commodity.

Consumer Price Index

An index that measures changes in the price level of a market basket of consumer goods and services purchased by households, indicative of inflation or deflation.

Quantity Theory

An economic theory that suggests that the amount of money in circulation directly impacts the level of economic activity and the price levels.

Increase Money

Increase in money typically refers to a rise in the amount of currency and bank deposits in an economy, leading to potential changes in inflation and purchasing power.