Which of the Following Is an Accurate Description of Dividends

question 1

Multiple Choice

Which of the following is an accurate description of dividends?

• A)They indicate the money invested by sole proprietors in their business.
• B)They refer to profits in a general partnership.
• C)They indicate the capital invested by each partner in a limited partnership.
• D)They are cash payments received through distribution of profits in a corporation.
• E)They indicate the amount of tax the incorporators of a business need to pay annually.

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Definitions:

Underapplied Overhead

Underapplied overhead occurs when the actual manufacturing overhead costs exceed the applied overhead costs allocated during a specific period.

Applied Overhead

The estimated amount of overhead cost assigned to a specific job or department based on predetermined rates.

Actual Overhead

The real, incurred costs of running a production or service operation, excluding direct labor and direct materials.

Activity-Based Costing

A pricing strategy that pinpoints various tasks within a company and allocates the expenses of each task to every product and service based on their specific usage.