wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Which of the following correctly describes the recording of a dividend declaration by a company's board of directors? Find the Answer at BYJU'S


A

A debit to retained earnings and a credit to cash

No worries! We‘ve got your back. Try BYJU‘S free classes today!
B

A debit to additional paid-in capital and a credit to dividends payable

No worries! We‘ve got your back. Try BYJU‘S free classes today!
C

A debit to cash and a credit to retained earnings.

No worries! We‘ve got your back. Try BYJU‘S free classes today!
D

A debit to retained earnings and a credit to dividends payable.

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution

The correct option is D

A debit to retained earnings and a credit to dividends payable.


Answer d. A debit to retained earnings and a credit to dividends payable

Explanation: In accounting, the retained earnings become a part of the shareholder’s income but are not yet received. Dividend declarations and dividend payable are the actual dates recorded in the book as the shareholders have received their share of dividends.


flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Understanding Balance Sheet
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon