A ________ Is a Payment to Current Shareholders in Which

question 8

Multiple Choice

A ________ is a payment to current shareholders in which the payment is less than 25% of the current shares held.

• A)stock split
• B)stock dividend
• C)cash dividend
• D)specially designated dividend

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Definitions:

Cash Payment

A transaction in which payment for goods or services is made in cash at the time of purchase.

FOB Shipping Point

A term indicating that the buyer takes responsibility for goods once they are shipped, including paying for shipping costs and bearing the risk of loss.

Prepaid Freight

Costs paid in advance for the transportation of goods, which is often recorded as a prepaid expense on the balance sheet.

Sales Invoice

A document issued by a seller to a buyer, recording a transaction and requesting payment for the sale of goods or services.