When Assets Are Distributed to the Owners of a Corporation

question 61

Multiple Choice

When assets are distributed to the owners of a corporation, these distributions are termed

• A) depletions.
• B) consumptions.
• C) dividends.
• D) a credit line.

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, offering a secure, low-risk investment option.

Petty Cash Fund

A little bit of readily available money intended for covering small costs.

General Journal Entry

A record in the general journal that documents financial transactions, including date, accounts affected, amounts, and description.

Transportation-In

Costs associated with bringing inventory to its current location and condition, typically considered part of inventory costs.