The Board of Directors of Capstone Inc

question 162

Multiple Choice

The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 5,000 shares held as treasury stock. What is the entry for the dividend declaration?

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Definitions:

Departmental Linkages

The connections and relationships between different departments within an organization, which facilitate coordination and communication.

Matrix Differentiation

A network-like organizational structure that allows for multiple reporting lines and integrates functional and project-based responsibilities.

Spatial Differentiation

The degree to which locations of an organization's units are physically separated, impacting coordination and operational efficiency.

Circular Differentiation

The process of distinguishing entities or elements in a system based on their roles, attributes, or positions in a circular, rather than linear, hierarchy.