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Declaration of a Cash Dividend Was Recorded by Debiting Operations

Question 52

Multiple Choice

Declaration of a cash dividend was recorded by debiting Operations Expense and crediting Cash.This error would cause:


A) the period end assets to be overstated.
B) the period end net income to be understated.
C) the period end stockholders' equity to be understated.
D) None of the above is correct.

Correct Answer:

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