At the date of declaration of an ordinary share dividend, the entry should not include
A)a credit to Share Capital-Ordinary.
B)a credit to Ordinary Share Dividend Distributable.
C)a debit to Retained Earnings.
D)All of these are acceptable.

Question

Quizplus · Accepted Answer

The entry should not include a credit to Share Capital-Ordinary at the date of declaration; instead, it should include a credit to Ordinary Share Dividend Distributable and a debit to Retained Earnings.

At the Date of Declaration of an Ordinary Share Dividend