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:

Record Selector Button

A graphical control element that allows users to select records, typically seen in database applications or spreadsheets.

Column Heading

The label or title at the top of a column that describes the type of data that column contains, often found in spreadsheets and tables.

Record Deletion Button

A feature in database and some applications which allows users to remove specific records or entries with a single click.

Field

A specific piece of data; a component of a database record that represents one piece of information within the record.