Imagine you are a CPA. You are preparing the financial statements of your company for the year ended December 31, 20x1. The board of directors declared dividends on February 1, 20x2. The dividend declaration is not subject to further approval. The financial statements were authorized for issue on April 1, 20x2. How should the dividends declared be accounted for in the 20x1 financial statements? Select the correct response: included in noncurrent liabilities O included in current liabilities disclosed only neither accrued nor disclosed
Imagine you are a CPA. You are preparing the financial statements of your company for the year ended December 31, 20x1. The board of directors declared dividends on February 1, 20x2. The dividend declaration is not subject to further approval. The financial statements were authorized for issue on April 1, 20x2. How should the dividends declared be accounted for in the 20x1 financial statements? Select the correct response: included in noncurrent liabilities O included in current liabilities disclosed only neither accrued nor disclosed
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Imagine you are a CPA. You are preparing the financial statements of your company for the year ended December 31, 20x1. The
board of directors declared dividends on February 1, 20x2. The dividend declaration is not subject to further approval. The financial
statements were authorized for issue on April 1, 20x2. How should the dividends declared be accounted for in the 20x1 financial
statements?
Select the correct response:
included in noncurrent liabilities
included in current liabilities
disclosed only
neither accrued nor disclosed
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