D37. A major disadvantage for shareholders, of using debt financing, is: the company is locked in to fixed payments of interest and principal shareholder control is altered interest is not deductible for tax purposes debtholders assume full control of the company 38. If a company declares a 10% share dividend on its ordinary shares, the account to be debited on the date of declaration is: Retained Earnings Ordinary Share Dividend Payable Paid-up Capital Ordinary Shares 39. An appropriate journal entry to record a cash dividend on declaration date is: Dr Retained earnings Cr Dividends payable Dr Retained earnings Cr Cash at Bank Dr Cash at Bank Cr Retained Earnings Dr Cash at Bank Cr Dividend payable 40. Which of the following would be least likely to impact on the period of time a company is allowed by a supplier after goods and services have been supplied before payment is required? The number of shareholders Creditworthiness of the company Standard terms of trade for that industry The importance of the company to the supplier