In a Study Session, a Classmate Makes This Statement "Dividends

question 49

Multiple Choice

In a study session, a classmate makes this statement "Dividends are listed as expenses on the income statement." What is your best response to this statement?

• A)I've been struggling with that concept and I feel that dividends should be shown on the balance sheet as assets.
• B)You are right.Revenues and expenses are shown on the income statement.Dividends are a cost of generating revenues and that makes them an expense.Why else would a corporation pay dividends?
• C)Dividends represent a portion of corporate profits paid to the shareholders.They belong on the retained earnings statement.
• D)Dividends are deducted from retained earnings on the balance sheet.

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Definitions:

Bowenian Family Systems

A therapeutic approach developed by Murray Bowen that emphasizes family relationships as an integral part of an individual's emotional health, focusing on patterns of interaction and how family members relate to one another.

Transference Reaction

A phenomenon in psychotherapy where a client redirects feelings they have about significant people in their life onto the therapist.

Symmetrical Relationship

A relationship characterized by equality and balance in power and control between parties.

One-upsmanship

A competitive tactic aiming to gain superiority or show dominance by besting others in conversation, achievements, or activities.