Which of the Following Is the Appropriate General Journal Entry

question 12

Multiple Choice

Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

• A) Retained Earnings
• Cash
• B) Cash Dividends Payable
• Cash
• C) Paid-In Capital
• Cash Dividends Payable
• D) Cash Dividends
• Cash Dividends Payable

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Definitions:

COGS

Cost of Goods Sold; the direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Cash Cycle

The cash cycle is the period between the purchase of inventory and the collection of receivables from the sale of that inventory.

Receivables Period

The usual period a business needs to obtain payments from customers for goods or services sold on a credit basis.

Inventory Period

The time it takes for a company to turn its inventory into sales, often measured in days or weeks.