Which of the Following Statements Is true

question 82

Multiple Choice

Which of the following statements is true?

• A)Amounts received from issuing stock are revenues.
• B)Amounts paid out as dividends are not expenses.
• C)Amounts paid out as dividends are reported on the income statement.
• D)Amounts received from issued stock are reported on the income statement.

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Definitions:

FOB Destination

A shipping term indicating that the seller is responsible for the goods and the cost of transport until they are delivered to the buyer's location.

Prepaid Freight Costs

Expenses paid in advance for the transportation of goods.

Purchases Discount

A reduction in the price paid for goods and services if payment is made within a certain period, often used to encourage early payment.

Cash Discounts

A reduction in the invoice amount by a seller to encourage early payment from the buyer, usually within a specified time frame.