Friday, October 9, 2020

When a company pays $2,500 dividends to its stockholders, the transaction should be recorded as:

When a company pays $2,500 dividends to its stockholders, the transaction should be recorded as:


A) Debit Cash; credit Dividends.

B) Debit Retained Earnings; credit Dividends.

C) Debit Dividends; credit Cash.

D) Debit Dividends; credit Accounts Payable.



Answer: C

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