When a Company Distributes Dividends

question 137

Multiple Choice

When a company distributes dividends

• A) it doesn't have to be cash, it could be another asset.
• B) the dividends account will be increased with a credit.
• C) the retained earnings account will be directly increased with a debit.
• D) the dividends account will be decreased with a debit.

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Definitions:

Securely Attached

A classification in attachment theory indicating an individual who has a positive view of self and others, leading to healthy, adaptive social and interpersonal relationships.

Low Anxiety

A state characterized by minimal feelings of tension, worry, or nervousness, often associated with a sense of calm or tranquility.

Low Avoidance

A characteristic of individuals who do not actively evade or try to prevent uncomfortable or negative situations.

Attachment Style

Patterns of behavior in relationships that are formed in early childhood and affect intimate relationships throughout life.