The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2014. The dividend is to be paid on August 15, 2014

The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2014. The dividend is to be paid on August 15, 2014, to stockholders of record on July 31, 2014. The correct entry to be recorded on August 15, 2014, will include a

debit to Dividends Payable.

debit to Cash Dividends.

credit to Cash Dividends.

credit to Dividends Payable.

The Common Stock Distributable account is classified as a current liability.

True

False

The current cash debt coverage ratio is computed by dividing net cash provided by operations by average total liabilities.

True

False

Which of the following transactions does not affect cash during a period?

Sale of treasury stock.

Collection of an accounts receivable.

Redeeming bonds before maturity.

Write-off of an uncollectible account.