On the date of declaration of the dividend, we _____.Multiple Choicecredit Retained Earningscredit Cashdebit Dividendsdebit Dividends Payable

Question

On the date of declaration of the dividend, we _____.Multiple Choicecredit Retained Earningscredit Cashdebit Dividendsdebit Dividends Payable
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Solution 1

On the date of declaration of the dividend, we debit Dividends.

Here's the step by step explanation:

  1. When a company declares a dividend, it is committing to pay a certain amount of cash to its shareholders at some point in the future.

  2. This declaration is a liability for the company, as it Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
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