The amount of cash paid for dividends for the current year can be calculated by the following formula:

Question

Quizplus · Accepted Answer

The beginning dividends payable represents the amount of dividends owed to shareholders from the previous year, and the ending dividends payable represents the amount of dividends still owed to shareholders at the end of the current year. By subtracting the ending dividends payable from the beginning dividends payable, we can determine the change in dividends owed throughout the year. Adding the dividends declared will then give us the total amount of cash paid for dividends for the current year. Therefore, A is the correct formula.

The Amount of Cash Paid for Dividends for the Current