Norton Corporation Has the Following Shareholders Equity on September 30

question 196

Multiple Choice

Norton Corporation has the following shareholders equity on September 30, 2021: On September 15, 2021, Norton Corporation declared a $ 170,000 dividend to be paid on October 15 to shareholders of record on September 30. Assuming there were no dividends in arrears, the total amount of the dividend paid to the preferred shareholders in 2021 would be

• A) $ 50,000.
• B) $ 0.
• C) $ 170,000.
• D) $ 150,000.

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Definitions:

Money Markets

Financial markets for short-term borrowing and lending, typically with maturities of less than one year.

Current Asset

An asset expected to be converted into cash, sold, or consumed within one year or the normal operating cycle of the business, whichever is longer.

Non-current Asset

Long-term investments or properties that a company holds and are not expected to be converted into cash within a year.

Current Liability

A financial obligation that is due to be settled within one year or within the normal operating cycle, whichever is longer.