Which One of the Following Is an Example of a Liquidating

question 1

Multiple Choice

Which one of the following is an example of a liquidating dividend?

• A) Valley Feed Mills recently sold its grain storage facility and is distributing the proceeds of that sale to its shareholders.
• B) Kate's Winery has excess cash that it wishes to distribute to its shareholders in addition to its normal cash dividend. This extra distribution usually occurs about once every year.
• C) Kurt's Music is planning to increase its quarterly dividend by three percent.
• D) The Dried Florist is preparing to pay its first annual dividend of $0.08 per share.
• E) Hi Tek had an extraordinarily profitable year and has decided to do a one-time only $10 per share cash dividend.

Know the appropriate capitalization for titles of respect before names.

Understand the capitalization rules for days, months, and special holidays.

Understand the rules of comma usage in compound sentences.

Identify correct comma usage in lists within sentences.

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Definitions:

Unit Cost

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Declining-Balance Method

A method of calculating depreciation that results in larger depreciation charges in the early years of an asset's life and smaller charges later on.

Straight-Line Method

A depreciation technique where an equal amount of depreciation expense is recognized for an asset over each year of its useful life.

Units Produced

The total quantity of units manufactured during a specific period in a manufacturing or production process.