When a Company Distributes Dividends

question 34

Multiple Choice

When a company distributes dividends,

• A)it doesn't have to be cash, it could be another asset.
• B)the dividends account will be increased with a credit.
• C)the retained earnings account will be directly increased with a debit.
• D)the dividends account will be decreased with a debit.

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Definitions:

Validity

The accuracy of a given measurement.

Consistency Result

Consistency result describes a situation in logic or mathematics where a set of statements or equations do not contradict each other and can coexist without generating errors.

Secondary Analysis

A research method involving analysis of existing data.

Code Analyze

The examination and evaluation of source code to identify errors, improve efficiency, and ensure that it meets all the necessary requirements or standards.