The Dividends Declared Account

question 84

Multiple Choice

The Dividends Declared account

• A)appears on the statement of income 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 shareholders' equity.

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Definitions:

Own Capital

The personal funds contributed by the owners or shareholders to a business for startup or expansion, representing equity in the firm.

Operating Profit

The profit earned from a firm's normal core business operations.

Assistant's Salary

refers to the compensation provided to an assistant, which can vary depending on the field of work, job responsibilities, and experience level.

Accounting Profit

The financial gain calculated by subtracting total expenses from total revenues, according to standard accounting practices.