Which One of the Following Statements Is Correct Concerning a Corporation

question 35

Multiple Choice

Which one of the following statements is correct concerning a corporation with taxable income of $125,000?

• A)Net income minus dividends paid will equal the ending retained earnings for the year.
• B)An increase in depreciation will increase the operating cash flow.
• C)Net income divided by the number of shares outstanding will equal the dividends per share.
• D)Interest paid will be included in both net income and operating cash flow.
• E)An increase in the tax rate will increase both net income and operating cash flow.

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Definitions:

English Colonists

Individuals from England who settled in areas of North America, eventually leading to the establishment of early American colonies in the 16th and 17th centuries.

Jamestown

The initial enduring settlement by the English in North America, founded in Virginia during the year 1607.

Headright System

A land grant policy that was used during the colonization of America, offering settlers a certain amount of land for each individual they brought over to the New World.

House of Burgesses

The first legislative assembly of elected representatives in North America, established by the Virginia Company in 1619.