Your Business Declared a $200 Dividend on August 31,payable in September.On

question 16

Multiple Choice

Your business declared a $200 dividend on August 31,payable in September.On August 31,which of the following adjusting journal entries would be made?

• A)Debit Dividends Receivable for $200; credit Dividends Declared for $200.
• B)Debit Dividends Declared for $200; credit Dividends Payable for $200.
• C)Debit Dividends Payable for $200; credit Dividends Declared for $200.
• D)Debit Dividends Declared for $200; credit Dividends Receivable for $200.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do pay (i.e., the market price).

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, often reflecting gains from trade.

Tariff Revenue

Income generated by a government from imposing tariffs on imported goods.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefit to society from producing and consuming a good or service.