After All Expenses Have Been Subtracted from Revenues on an Income

question 55

Multiple Choice

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a negative number.

• A)negative liability
• B)net liability
• C)net loss
• D)owners' negative equity
• E)net expense

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Definitions:

Ex-Dividend

A status indicating that a stock is trading without the right to receive the most recently declared dividend.

Declared Dividends

Dividends announced by a company's board of directors that are to be paid out to shareholders.

High-Dividend-Payout

Strategy by which a firm distributes a significant portion of its profits in the form of dividends to its shareholders.

Cash Payments

Transactions in which the exchange of goods or services is made with immediate transfer of cash from buyer to seller.