Dividends and Dividend Preferences Video Lessons

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Problem: Which of the following correctly describes the recording of a dividend declaration by a company's board of directors? a. A debit to retained earnings (or dividends) and a credit to cash. b. A debit to contributed capital and a credit to dividends payable. c. A debit to cash and a credit to retained earnings (or dividends). d. A debit to retained earnings (or dividends) and a credit to dividends payable.

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Which of the following correctly describes the recording of a dividend declaration by a company's board of directors?

a. A debit to retained earnings (or dividends) and a credit to cash.

b. A debit to contributed capital and a credit to dividends payable.

c. A debit to cash and a credit to retained earnings (or dividends).

d. A debit to retained earnings (or dividends) and a credit to dividends payable.

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