If the opening balance of dividends payable is $120 000 and the closing balance is $90 000,and dividends declared at the end of the period are $50 000,how much cash was paid for dividends in that period?
A) $0
B) $80 000
C) $20 000
D) $40 000

Question

Quizplus · Accepted Answer

The cash paid for dividends can be calculated by adding the dividends declared to the opening balance of dividends payable and then subtracting the closing balance. So, $120,000 (opening balance) + $50,000 (dividends declared) - $90,000 (closing balance) = $80,000 paid in cash for dividends.

If the Opening Balance of Dividends Payable Is $120 000