A cash dividend becomes a legal liability of the company on the:

Select one:

a.None of these answer choices are correct

b.declaration date.

c.payment date.

d.record date.

Corporations generally issue stock dividends in order to:

Select one:

a.Decrease the amount of capital in the corporation

b.Increase marketability of corporation's stock

c.Enhance the market value per share

d.Increase in number of shares outstanding

On December 31, 2020, Stanford, Inc. has 1,500 shares of 30% $100 par value cumulative preferred stock. On December 31, 2020, the directors declare a $30,000 cash dividend. The entry to record the payment of the dividend would include:

Select one:

a. a debit of $30,000 to Cash.

b.None of these answer choices are correct

c.a debit of $30,000 to Dividends Payable.

d.a debit of $30,000 to preferred Stock.

In order for a corporation to pay a cash dividend:

Select one:

a.both A and B must occur.

b.it must have adequate cash.

c.it must have adequate retained earnings.

d.it must have adequate investment.

The appropriate journal entry on the date of distribution is:

Select one:

a.to debit cash and credit dividends payable.

b.to debit dividends payable and credit cash.

c.No entry.

d.to debt cash and retained earnings.

Dividends Payable is classified as a:

Select one:

a.None of these answer choices are correct

b.Current liability

c.Long-term liability

d.Current asset