In a Study Session, a Classmate Makes This Statement "Dividends

question 214

Multiple Choice

In a study session, a classmate makes this statement "Dividends are listed as expenses on the income statement." What is your best response to this statement?

• A) I've been struggling with that concept and I feel that dividends should be shown on the balance sheet as assets.
• B) You are right. Revenues and expenses are shown on the income statement. Dividends are a cost of generating revenues and that makes them an expense. Why else would a corporation pay dividends?
• C) Dividends represent a portion of corporate profits that are paid to the shareholders. They belong on the retained earnings statement.
• D) Dividends are deducted from retained earnings on the balance sheet.

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Definitions:

Integrated Neural Activity

involves the coordinated action and interaction of neurons across different areas of the brain, enabling complex processes like cognition, emotion, and perception.

Memory Consolidation

The biological process of making newly learned information more stable and durable in the brain, often during sleep.

Sleep

A spontaneous condition of both the mind and body marked by a change in consciousness, decreased sensory activities, and a suppression of almost all voluntary muscle movements.

Restorative

Having the ability to return health, strength, or a feeling of well-being.