When a Company Distributes Dividends

question 137

Multiple Choice

When a company distributes dividends

• A) it doesn't have to be cash, it could be another asset.
• B) the dividends account will be increased with a credit.
• C) the retained earnings account will be directly increased with a debit.
• D) the dividends account will be decreased with a debit.

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Definitions:

Dominated Personality

A personality type that tends to exert control or influence over others, often characterized by assertiveness and decisiveness.

Id

A component of Sigmund Freud's psychoanalytic theory, representing the instinctual drives and the source of psychic energy.

One Month Old

Referring to an infant who is approximately four weeks old, often highlighting a very early stage in human development.

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology.