Corporate Profits Distributed as Dividends Are

question 56

Multiple Choice

Corporate profits distributed as dividends are

• A)tax-free.
• B)taxed once.
• C)taxed twice.
• D)taxed three times.

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Definitions:

Bad Debts

Debts that are not recoverable and are written off as a loss by the business because they cannot be collected.

Journal Entries

Journal entries are the recordings of financial transactions in the books of accounts, serving as the primary input in the accounting system.

Doubtful Accounts

Accounts receivable considered unlikely to be collected, prompting businesses to create allowances for bad debts.

Bad Debts Adjustment

An accounting entry made to account for invoices that are not expected to be collected due to customer default.