The Payment of a Dividend Will Reduce the Following Two

question 25

Multiple Choice

The payment of a dividend will reduce the following two accounts:

• A) Common shares and cash.
• B) Equity and cash.
• C) Cash and dividends payable.
• D) Retained earnings and dividends payable.
• E) Equity and retained earnings.

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Definitions:

Median

The middle value of a data set when it is ordered from least to greatest, separating the higher half from the lower half.

Ordered Data Set

A collection of objects or numbers arranged in a natural, chronologically sequential or hierarchical order.

Median

The value separating the higher half from the lower half of a data sample, a population, or a probability distribution, often used as a measure of central tendency.

Variability

A measure of the dispersion or spread of data points in a dataset, indicating how much the numbers differ from each other and from the mean.