A Cash Payment Made by a Firm to Its Owners

question 56

Multiple Choice

A cash payment made by a firm to its owners when some of the firm's assets are sold off is called a(n)

• A)extra cash dividend.
• B)special dividend.
• C)regular cash dividend.
• D)liquidating dividend.
• E)share repurchase.

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Definitions:

Adjusted Trial Balance

A statement listing all accounts and their final balances after adjusting entries are made, used to prepare financial statements.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones.

Retained Earnings Account

An equity account that represents the accumulated portion of net income that a company retains after distributing dividends to shareholders.

Balance Sheet Accounts

Categories in a balance sheet including assets, liabilities, and shareholders' equity, representing a company's financial position.