Retained earnings contains a debit of $10,000 representing dividends while the dividends payable account decreased $500.Cash paid for dividends during the period amounted to $10,500.

Question

Quizplus · Accepted Answer

The fact that the dividend account has a debit of $10,000 and the dividends payable account decreased by $500 indicates that $10,500 was paid out during the period, which matches the amount stated as being paid in cash for dividends. Therefore, the statement is true.

Retained Earnings Contains a Debit of $10,000 Representing Dividends While