The Declaration and Payment of a Cash Dividend Does Which

question 44

Multiple Choice

The declaration and payment of a cash dividend does which of the following?

• A) Reduces retained earnings and increases liabilities by the amount of the dividend.
• B) Reduces retained earnings and increases contributed capital by the same amount.
• C) Reduces assets and increases liabilities each by the amount of the dividend.
• D) Reduces assets and retained earnings each by the amount of the dividend.

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Definitions:

Tests

Examinations or assessments used to measure knowledge, skills, abilities, or performance.

Basic Standard Deduction

A set dollar amount that reduces the income on which you are taxed, varying according to filing status, available to all taxpayers who do not itemize deductions.

Single Taxpayer

A filing status for individuals who are unmarried or legally separated from their spouse by the end of the tax year, with tax rates and standard deductions specific to single filers.

Personal Exemptions

Deductions allowed by the IRS on income tax for the taxpayer and dependents, though largely eliminated for tax years 2018 through 2025.