The Third Number to the Right of the Decimal Point

question 16

Multiple Choice

The third number to the right of the decimal point is in the __________ position.

• A) tenths
• B) thousandths
• C) hundreds
• D) thousands

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Definitions:

Expense Account

An account that records the costs incurred by a business during a period, such as rent, utilities, and salaries.

Dividends Declared

Profits that a company's board of directors has decided to distribute to its shareholders, typically in the form of cash payments or additional shares.

Cash Account

A financial account that records cash transactions, both receipts and disbursements, within a business.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company to reinvest in its core business or to pay debt.