Accounting Basics When the board declares dividends, the correct journal will be a. Dr:Dividends Expense; Cr: Dividends Payable b. Dr: Dividends Declared; Cr: Dividends Payable c. Dr: Dividends Receivable; Cr: Dividends Revenue d. Dr: Dividend Declared; Cr: Cash

Generally the major difference between preferred shares and common shares is

a. preferred shares are restricted by the amount of dividends that can be paid out.

b. there are no significant differences between preferred and common shares.

c. preferred shares have voting rights.

d. common shares have a priority claim over corporate assets.