Posted: April 18th, 2016
1) When a corporation distributes a dividend the
most common form of distribution is a cash dividend.
Dividends account will be increased with a credit.
Retained Earnings account will be directly increased with a debit.
Dividends account will be decreased with a debit.
2. An accounting record that includes a list of accounts and their balances at a given time is called a
trial balance.
general journal.
general ledger.
chart of accounts.
3. The purpose of the ledger is to
record chronologically the day’s transactions.
keep a record of documentation to support each transaction.
keep in one place all information about changes in specific account balances.
make sure that all assets, liabilities, etc., have normal balances at all times.
4. In recording accounting transactions, evidence that a transaction has taken place is obtained from
source documents.
the public relations department.
the Securities and Exchange Commission.
5. If total liabilities increased by $5,000, then
assets must have decreased by $5,000.
stockholders’ equity must have increased by $5,000.
assets must have increased by $5,000, or stockholders’ equity must have d
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