The Dividends Account

question 15

Multiple Choice

The Dividends account

• A) appears on the income statement along with the expenses of the business.
• B) must show transactions every accounting period.
• C) is increased with debits and decreased with credits.
• D) is not a proper subdivision of retained earnings.

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, typically resulting in lower per-unit costs with increased production.

Horizontal Mergers

The combination of two or more firms operating at the same level of the supply chain in similar or different industries.

Production

The process of creating, manufacturing, or enhancing goods and services.

Distribution

In business, distribution refers to the process of getting a product or service from the manufacturer or service provider to the end consumer.