Which Statement Regarding Financial Statements Is True

question 24

Multiple Choice

Which statement regarding financial statements is true?

• A)Dividends paid reduce the net income that is reported on a company's income statement.
• B)If a company uses some of its bank deposits to buy short-term, highly liquid marketable securities, this will cause a decline in its current assets as shown on the balance sheet.
• C)If a company issues new long-term bonds during the current year, this will increase its reported current liabilities at the end of the year.
• D)If a company pays more in dividends than it generates in net income, its retained earnings as reported on the balance sheet will decline from the previous year's balance.

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Definitions:

Esophageal Diverticulum

An abnormal pouch or sac forming in the esophagus walls, which can cause difficulty swallowing and other symptoms.

Esophagogastroduodenoscopy

A diagnostic procedure that allows a physician to inspect the inside of the esophagus, stomach, and initial part of the small intestine using a flexible tube with a light and camera.

Endoscopic Retrograde Cholangiopancreatography

A diagnostic and therapeutic procedure that combines endoscopy and fluoroscopy to examine and treat problems in the bile and pancreatic ducts.

Esophagus

The muscular tube connecting the throat (pharynx) to the stomach, responsible for moving swallowed food and liquids to the stomach through peristaltic movements.