Which of the Following Statements About the Dividends Account Is

question 123

Multiple Choice

Which of the following statements about the Dividends account is correct?

• A)It has a credit balance.
• B)It is an expense.
• C)It reduces Retained Earnings.
• D)It is an account that is reported only on the income statement.

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Definitions:

Term Insurance

Insurance that is issued for a particular period, usually five or ten years.

Straight Life

In the context of life insurance, a straight life policy offers a guaranteed death benefit and lifetime coverage with fixed premium payments.

Universal Life

A type of flexible permanent life insurance that offers the low-cost protection of term life insurance as well as a savings element, which is invested to provide a cash value buildup.

Protection

Measures taken to safeguard something or someone against harm or damage.