Which of the Following Statements Is CORRECT

question 6

Multiple Choice

Which of the following statements is CORRECT?

• A) 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.
• B) Dividends paid reduce the net income that is reported on a company's income statement.
• C) 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.
• D) 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.
• E) Accounts receivable are reported as a current liability on the balance sheet.

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Definitions:

Young People

Individuals in their early life stages, generally considered to be in the age range from adolescence to early adulthood.

Careers

The progression of occupational roles or jobs that a person undertakes over their working lifetime, often related to their skills and interests.

First Marriage

The initial matrimonial union of an individual, before any potential subsequent marriages.

Young People

Individuals in their late childhood to early adulthood, often considered to encompass teenagers and those in their early 20s.