When a Company Pays Dividends

question 213

Multiple Choice

When a company pays dividends

• A) the dividend 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:

Depression

A long-term psychological condition with a prevalent mood of dejection or lack of interest in usual pursuits, drastically affecting everyday life.

Etiology

The investigation into the origins or causes of diseases or medical conditions.

Manic Episode

A period of abnormally elevated mood, characterized by increased energy, activity, and often risk-taking behaviors, usually seen in bipolar disorder.

Hypoactive

Displaying lower than normal activity or responsiveness.