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At the End of the Year a Company Declared a Final

Question 49

Multiple Choice

At the end of the year a company declared a final cash dividend out of its retained earnings. The correct journal entry to record this declaration is:


A) DR Cash; CR Final dividend payable
B) DR Retained earnings; CR Final dividend payable
C) DR Final dividend payable; CR Cash
D) DR Share capital; CR Final dividend payable

Correct Answer:

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