Which of the Following Statements Is Not True About Distributions

question 9

Multiple Choice

Which of the following statements is not true about distributions to owners?

• A)Distributions to owners represent a decrease in equity.
• B)Distributions to owners result from incurring liabilities.
• C)Distributions to owners are included in other comprehensive income.
• D)Distributions to owners result from rendering services.

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Definitions:

Investment Principal

A sum of money invested initially in a financial instrument or vehicle, which serves as the base on which returns or interest is calculated.

Passive Asset Allocation

An investment strategy that aims to build a portfolio mimicking a market index's composition, requiring minimal buying and selling.

Proportions

The quantitative relationship between two amounts, showing the number of times one value contains or is contained within the other.

Portfolio Management

The act of making investment decisions to meet specified investment goals for the benefit of the investors.