Payments by a Corporation to Its Shareholders Are Known as

question 168

Multiple Choice

Payments by a corporation to its shareholders are known as

• A)stocks.
• B)bonds.
• C)coupons.
• D)dividends.

---

Definitions:

Note Payable

A liability representing a written promise to pay a specified amount of money at a future date, often including interest payments.

Maturity

The date on which a financial instrument, such as a bond or loan, becomes due and the principal is to be repaid.

Notes Payable

A written agreement where a borrower agrees to pay back a lender a specific amount of money, often with interest, by a certain date, recorded as a liability in financial statements.

Interest Expense

The cost incurred by an entity for borrowed funds, often reported on the income statement.