When a corporation pays a dividend, the
A)Cash account will be increased with a debit.
B)Dividends Declared account will be increased with a credit.
C)Retained Earnings account will be directly increased with a debit.
D)Dividends Declared account will be increased with a debit.

Question

Quizplus · Accepted Answer

When a corporation pays a dividend, it records the transaction by increasing (debiting) the Dividends Declared account. This reflects the reduction in retained earnings that results from the dividend payment.

When a Corporation Pays a Dividend, the