Question

15) The entry to record the payment of an interim dividend includes a: A) Debit to Interim dividend payable C) Credit to Bank B) Credit to Interim dividend payable D) both A and C 16) Recoverable amount is defined as: A) the higher of an asset's fair value less costs to sell and its value in use B) the lower of an asset's carrying amount and its book value C) the higher of an asset's carrying amount and its book value D) the lower of an asset's fair value less costs to sell and its value in use 17) when a share dividend is declared there is: A) a decrease in total shareholders' equity C) an increase in retained earnings B) no change in total shareholders' equity D) an increase in total shareholders' equity 18) 19) 20) TRUE/FALSE. Write T" if the statement is true and F' if the statement is false. 21) When an interim dividend is declared, the interim dividend payable account is debited 22) Undistributed profits of a company can be maintained as retained earnings or transferred to reserves. 23) Some reserves are mandated through the adoption of specific accounting standards. 24) The principle of capital maintenance places restrictions on the return of contributed equity to shareholders. 29 AASB 136: Impairment of Assets permits the carrying of non-current assets at an amount in excess of fair value. 26) Current accounting practice no longer distinguishes between capital and revenue profits. 27) The state of a company unable to pay debts as they fall due is known as solvency 28) AASB 101 requires disclosure of dividends proposed or declared but not recognised in the financial statements for both ordinary and preference shares. 29) The forfeited shares reserve consists of the amounts received on shares forfeited for non- payment of calls. 30) Measurement is the process of incorporating in the statement of financial position or the statement of prehensive income an item that meets the definition and recognition criteria of an element. com

Answer 1

15. Journal entry to record the payment of interim dividend is:

Debit interim dividend payable

Credit Bank.

So answer is D. A and C