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Failure to Record the Declaration and Distribution of a Share

Question 33

Multiple Choice

Failure to record the declaration and distribution of a share dividend would:


A) Cause an understatement of equity.
B) Cause the outstanding shares to exceed the equity.
C) Have no effect on total equity.
D) Cause an overstatement of equity.
E) Cause the balance sheet to be out of balance.

Correct Answer:

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