A Corporation May Distribute Its Income to Shareholders Through ________

question 34

Multiple Choice

A corporation may distribute its income to shareholders through ________.

• A)allocations
• B)grants
• C)dividends
• D)provisions
• E)allowances

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Definitions:

Normal Balance

The side of the account (debit or credit) on which increases to the account are recorded, based on the account type.

Financial Statement

Official documents detailing the monetary transactions and financial status of a company, person, or any distinct unit.

Permanent/Temporary

Describes items or accounts within financial accounting that either persist over time (permanent) or are expected to be concluded within a certain period (temporary).

Normal Balance

The side (debit or credit) on which entries increase an account's balance, based on the accounting equation.