If Llama Company Has Paid Out More in Dividends Than

question 143

Multiple Choice

If Llama Company has paid out more in dividends than it has had in net income, over the lifetime of the company, then the balances in the Stockholders' Equity should show:

• A) a negative balance in the Retained Earnings account.
• B) a positive balance in the Retained Earnings account.
• C) a negative balance in the Common Stock account.
• D) a positive balance in the Common Stock account.