Which of the Following Statements Is CORRECT

question 117

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,its current assets as shown on the balance sheet will decline.
• C) If a company issues new long-term bonds to purchase fixed assets during the current year,its reported current assets and current liabilities at the end of the year will increase.
• 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:

School Prayer

The act of prayer in educational institutions, which can be a topic of debate due to concerns about religious freedom and the separation of church and state.

Court Cases

Legal disputes brought for review and resolution in a court of law.

First Amendment

An amendment to the U.S. Constitution that prohibits the government from making laws that infringe upon the freedom of speech, religion, press, assembly, and petition.

Religious Freedom

The right to practice any religion of one's choice, or none, without government interference, as guaranteed by the Constitution.