Which of the Following Statements Is True If the Income

question 45

Multiple Choice

Which of the following statements is true if the income statement credit column exceeds the income statement debit column on a worksheet?

• A)The company has a net income.
• B)The company has a net loss.
• C)The capital account decreased during the period.
• D)The total liabilities exceed total assets.

---

Definitions:

Automatic Dividend Reinvestment

A program that automatically uses dividends paid by investments to purchase more shares of those investments.

Homemade Dividend Policies

Investment strategies whereby investors create their own dividend stream by selling a portion of their portfolio of equities.

Stockholders

Individuals or entities that own shares in a corporation, thereby having partial ownership and potentially receiving dividends.

Dividend Payout

The portion of a company's earnings distributed to shareholders, typically in the form of cash or additional shares.