Declaring and Paying a Dividend Which of the following is true about a company that declares and/or pays dividends? Hint: Journal entries may help. Multiple Choice When a company declares and immediately pays a dividend, a liability is credited When a company declares a dividend, dividend expense is incurred. When a company declares and immediately pays a dividend, a liability is credited. When a company declares a dividend, dividend expense is incurred. When a company declares a dividend, whether or not it is paid yet, retained earnings increases. When a company declares a dividend but does not pay it yet, dividend payable is credited When a company declares a dividend but does not pay it yet, a financing cash flow is recorded