Use the Following Information to Calculate Cash Received from Dividends

question 13

Multiple Choice

Use the following information to calculate cash received from dividends: $$\begin{array} { l l r } \text { Dividends revenue } & \$ 63,500 \\\text { Dividends receivable, January 1 } & 3,600 \\\text { Dividends receivable, December } 31 & 3,100\end{array}$$

• A) $64,000.
• B) $63,500.
• C) $60,400.
• D) $67,100.
• E) $63,000.

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Definitions:

Discount Period

The time frame within which a payment can be made at a reduced rate before the full invoice amount becomes due.

Payment Terms

The conditions under which a seller will complete a sale, often specifying the period allowed to a buyer to pay off the amount due.

Amount Owing

The total sum of money that is currently due or outstanding.

Invoice

A statement provided by a seller to a buyer that outlines the details of a transaction and asks for payment.