Which of the Following Transactions Is Represented by the Diagram

question 9

Multiple Choice

Which of the following transactions is represented by the diagram below?

• A)A junkyard holds weekly sales where it sells its entire inventory.
• B)A shoe store sells products to consumers.
• C)A stay-at-home mom creates furniture for doll houses. When one piece is finished, she sells it on Amazon.com.
• D)Netflix sells movies to consumers through its online downloading service.

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Definitions:

Distribution

The process of making a product or service available for the consumer or business user that needs it.

Earnings Per Share

A financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company’s profitability.

Preferred Dividends

Dividends that are paid out to preferred shareholders before any dividends are distributed to common shareholders, typically at a fixed rate.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in cash.