Which of the Following Shows How the Year-End Adjustment to Recognize

question 73

Multiple Choice

Which of the following shows how the year-end adjustment to recognize supplies expense will affect a company's financial statements?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

---

Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to vote at shareholder meetings and to receive dividends.

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's earnings paid out as dividends to shareholders.

Dividend Reinvestment Plans

Programs offered by corporations allowing investors to automatically reinvest dividends paid out by the stock into additional shares, potentially increasing their holdings over time.

New Stock

Shares that are issued for the first time by a company to the public in the primary market.