Asked by
Oscar Sessoms
on Nov 15, 2024
Verified
The entry to record the payment of a cash dividend would include a:
A) debit to Dividends Payable.
B) debit to Retained Earnings.
C) credit to Cash.
D) Both A and C
Dividends Payable
A liability account that records the amount of dividends that a company has declared but not yet paid to its shareholders.
Cash
denotes money in the form of currency, including banknotes and coins, which is used to conduct transactions.
- Gain insight into the operations and outcomes of declaring dividends and making their payments.
- Learn about the influence of dividends on financial reports and the procedure for recording them in journals.
Verified Answer
MC
Learning Objectives
- Gain insight into the operations and outcomes of declaring dividends and making their payments.
- Learn about the influence of dividends on financial reports and the procedure for recording them in journals.