The Dividends Account Is a Permanent Account Whose Balance Is

question 115

True/False

The dividends account is a permanent account whose balance is carried forward to the next accounting period.

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Definitions:

Taxes

Compulsory financial charges or levies imposed by a government on individuals or organizations to fund public expenditures.

Aggregate Demand

The total amount of goods and services that all consumers, companies, and the government are willing to buy at a given price level in an economy.

Recessions

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Automatic Stabilizers

Economic policies and programs designed to offset fluctuations in a nation's economic activity without the need for intervention by policymakers.