On the date a dividend is declared,the company:
A)debits Dividends Declared and credits Dividends Payable for the amount of the dividend.
B)debits Dividend Expense and credits Cash for the dividend amount.
C)debits Dividends Payable and credits Cash for the dividend amount.
D)establishes who will receive the dividend payment.

Question

Quizplus · Accepted Answer

When a dividend is declared, the company records a liability by debiting Dividends Declared and crediting Dividends Payable.

On the Date a Dividend Is Declared,the Company