declared and paid a 5,000 cash dividend, requires a debit to\na cash.\nb dividends.\nc common stock.\nd…

declared and paid a 5,000 cash dividend, requires a debit to\na cash.\nb dividends.\nc common stock.\nd accounts payable.

declared and paid a 5,000 cash dividend, requires a debit to\na cash.\nb dividends.\nc common stock.\nd accounts payable.

Answer

Brief Explanations:

When a company declares and pays a cash dividend, it records a debit to the Dividends account to show the distribution of earnings to shareholders. Cash is credited as it is being paid out. Common stock represents ownership and is not affected in this transaction. Accounts payable is for amounts owed to creditors and is not relevant here.

Answer:

B. Dividends