Which of the Following Statements Is CORRECT

question 34

Multiple Choice

Which of the following statements is CORRECT?

• A)Dividends paid reduce the net income that is reported on a company's income statement.
• B)If a company uses some of its bank deposits to buy short-term, highly liquid marketable securities, this will cause a decline in its current assets as shown on the balance sheet.
• C)If a company issues new long-term bonds to purchase fixed assets during the current year, this will increase both its reported current assets and current liabilities at the end of the year.
• D)Accounts receivable are reported as a current liability on the balance sheet.
• E)If a company pays more in dividends than it generates in net income, its retained earnings as reported on the balance sheet will decline from the previous year's balance.

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Definitions:

Regression Model

A statistical technique used to predict the value of a dependent variable based on the values of one or more independent variables.

Significant

A term used in statistics to denote that a result is not likely to occur by chance alone, and therefore indicates a meaningful difference or relationship.

Level of Significance

A threshold used in statistical hypothesis testing to decide whether to reject the null hypothesis, usually expressed as a probability value (p-value).

Inclusion of Education

The practice of incorporating educational elements, values, or practices into broader spheres or systems.