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:

Customer Cost Analysis

An evaluation of all the costs involved in acquiring and retaining customers, used to determine the profitability of customer relationships.

Time-Driven Activity-Based Costing

A cost accounting method that allocates indirect costs to products and services based on the time required for activities.

Tech Support Department

A division within a company responsible for assisting customers with technical problems or questions related to the company's products or services.

Customer Cost Analysis

An assessment to determine the total cost to serve a customer, including acquisition, fulfillment, and support costs.