Failure to Record the Declaration and Distribution of a Share

question 81

Multiple Choice

Failure to record the declaration and distribution of a share dividend would:

• A) Have no effect on total equity.
• B) Cause the outstanding shares to exceed the equity.
• C) Cause an understatement of equity.
• D) Cause an overstatement of equity.
• E) Cause the balance sheet to be out of balancE.

---

Definitions:

FIFO

An inventory valuation method where the first items produced or purchased are the first ones considered sold, standing for "First-In, First-Out."

Departmental Production Report

A detailed document that summarizes the production activities and outcomes of a specific department within a manufacturing company.

Equivalent Units

A concept in cost accounting used to express a quantity of partially completed goods in terms of fully completed units.

Physical Flow

The actual movement of goods or materials through a production process, from receipt of raw materials to the delivery of final products.