During January 2014, Carey Services Inc

question 47

Multiple Choice

During January 2014, Carey Services Inc. paid a cash dividends of $2,000. This transaction

• A) reduces stockholders' equity by $2,000.
• B) increases stockholders' equity by $2,000.
• C) reduces net income by $2,000.
• D) increases expenses by $2,000.

---

Definitions:

Federal Budget Deficit

The financial situation that occurs when a government's expenditures exceed its revenues in a fiscal year.

Unemployment Rate

The share of the labor force that has no current job but is in the process of looking for one actively.

Computerization

The process of applying computer technology to automate tasks, processes, or functions in various fields.

Inflation Rate

The frequency at which the universal cost for goods and services climbs, consequently eroding purchasing efficacy.