The Entry to Record the Payment of a Previously Declared

question 90

Multiple Choice

The entry to record the payment of a previously declared dividend of $0.25 per share on 18,500 shares of common stock includes a ________.

• A) debit to Cash Dividends for $4625
• B) debit to Cash $4625
• C) credit to Cash Dividends for $4625
• D) debit to Dividends Payable for $4625

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Definitions:

Cash Dividends

Payments made by a company out of its profits to its shareholders in the form of cash.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and investments.

Investing Activities

Transactions involving the acquisition or disposal of non-current assets like property, plant, and equipment, or securities, which are part of a company’s cash flow statement.

Cash Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.