On December 15, 2016, the Board of Directors of Cross

question 121

Multiple Choice

On December 15, 2016, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2017, of $.80 per share on the 2,000,000 common shares outstanding. On December 15, 2016, Cross Corporation should:

• A)not prepare a journal entry because the event had no effect on the corporation's financial position until 2017.
• B)decrease retained earnings $1.6 million and increase expenses $1.6 million.
• C)decrease retained earnings $1.6 million and increase liabilities by $1.6 million.
• D)decrease cash $1.6 million and decrease retained earnings $1.6 million.

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.

Depression

This condition, defined by a consistently low emotional state or a lack of enthusiasm for activities, notably hinders regular daily activities.

Downward Social Comparison

A defensive tendency to compare oneself with someone whose troubles are more serious than one’s own.

Self-verification

The process through which individuals seek to confirm their self-concept by encouraging feedback that aligns with their existing beliefs and perceptions about themselves.