When a Dividend Is Declared, but Unpaid at the End

question 44

True/False

When a dividend is declared, but unpaid at the end of a financial year, credit consolidation adjustments are required against both the dividend declared and dividend receivable account.

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Definitions:

National Policy

A course of action adopted and pursued by a government or political party on national issues.

States' Powers

The rights and responsibilities allocated to state governments, as distinguished from those vested in the federal government, under a federal system of governance.

Elastic Clause

A provision in the U.S. Constitution (Article I, Section 8, Clause 18) granting Congress the power to pass all laws necessary and proper for carrying out the enumerated list of powers.

Necessary

Essential or needed for a particular purpose or to achieve a specific outcome.