Regular Dividends Are Declared Out of

question 7

Multiple Choice

Regular dividends are declared out of

• A) Paid-in Capital in Excess of Par.
• B) Treasury Stock.
• C) Common Stock.
• D) Retained Earnings.

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Definitions:

Notes Collected

The process of receiving payment on promissory notes, which are written promises to pay a specific sum of money.

Accounts Payable

Short-term liabilities of a business which are owed to suppliers for goods and services purchased on credit.

Voucher

A document or record that verifies a transaction and authorizes the payment or receipt of funds.

Journal

A record where all financial transactions are initially entered in chronological order.