On September 30,ABC Co

question 27

Multiple Choice

On September 30,ABC Co.received a bill for $1,000 for running a newspaper ad in September.The bill will be paid in October.Which of the following statements is correct for September?

• A) Liabilities are decreased by $1,000.
• B) Assets are increased by $1,000.
• C) Expenses are increased by $1,000.
• D) Revenues are decreased by $1,000.

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Definitions:

Dislike of Uncertainty

A preference for predictable environments and a tendency to avoid situations with uncertain outcomes.

High Dividend Policy

A financial strategy where a company decides to pay out a high proportion of its earnings in the form of dividends to its shareholders.

Investors'

individuals or entities that allocate capital with the expectation of receiving financial returns.

High Dividend Payout

Refers to a situation where a company distributes a large portion of its earnings to shareholders in the form of dividends, often viewed as a sign of financial stability.