The entry to record the payment of a previously declared dividend of $0.25 per share on 18,500 shares of common stock includes a ________.

Name: The entry to record the payment of a previously declared dividend of $0.25 per share on 18,500 shares of common stock includes a ________.
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

When a company pays a previously declared dividend, it decreases the Dividends Payable account (a liability) with a debit, reflecting the reduction of the company's liability as it pays out the dividend.

The Entry to Record the Payment of a Previously Declared