A Payment Made by a Firm to Its Owners in the Form

question 68

Multiple Choice

A payment made by a firm to its owners in the form of new shares of stock is called a _____ dividend.

• A)special
• B)extra
• C)stock
• D)normal
• E)liquidating

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Definitions:

Capital

Refers to the financial assets or resources that individuals or businesses have available to invest or spend on building and growing their operations.

Expense Account(s)

Accounts used to record the costs incurred in the operation of a business, such as rent, utilities, and salaries, which are used to calculate net income.

Assets

Resources owned by a business that have economic value and can be used to meet debts or commitments.

Companionship

A close relationship between individuals where they share company and support, often providing emotional comfort and friendship.