Which of the Following Statements Is CORRECT

question 31

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:

Administrative Activities

Tasks related to the management and execution of the day-to-day operations within an organization.

Information-gathering

The process of collecting data and information for the purpose of making decisions or understanding a situation.

Relational Database

A type of database that stores and provides access to data points that are related to one another, typically structured in tables.

HR Staff

HR staff are individuals working in the Human Resources department, responsible for managing employee-related processes such as recruitment, training, benefits, and compliance.