Cash Dividends

question 43

Multiple Choice

Cash dividends:

• A) decrease revenue on the income statement.
• B) decrease retained earnings on the statement of retained earnings.
• C) increase expenses on the income statement.
• D) decrease operating activities on the statement of cash flows.

---

Definitions:

Total Sales

Total Sales represents the aggregate revenue a company generates from selling its goods or services within a specific period before any expenses are deducted.

Variable Costs

Costs that vary directly with the level of production or volume of output.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and labor.

Fixed Cost

Expenses that do not change in proportion to the level of production or business activity.