Bennoit Corporation Paid Dividends Totaling $€ 295,000$ To Its Shareholders $€ 295,000$

question 100

Multiple Choice

Bennoit Corporation paid dividends totaling $€ 295,000$ to its shareholders. This transaction will decrease assets and

• A) decrease equity by \(€ 295,000\).
• B) decrease liabilities by \(€ 295,000\)
• C) increase expenses by \(€ 295,000\).
• D) have no effect on the accounting equation.

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Definitions:

Break-even Units

The number of units a company must sell to cover all its costs, with no profit or loss.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials or labor directly involved in producing a product.

Selling Price

The amount of money charged for a product or service, or the sum for which something is offered for sale.

Profit Increase

A financial metric indicating an augmentation in a company's earnings over a specific period.