Which of the Following Statements Is TRUE

question 27

Multiple Choice

Which of the following statements is TRUE?

• A)Dividends are expenses of a business.
• B)Dividends reduce retained earnings.
• C)Dividends increase retained earnings.
• D)Dividends reduce net income.

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Definitions:

Service

A type of economic activity that is intangible, is not stored, and does not result in ownership; services are produced and consumed at the same time.

Exchange

The act of giving one thing and receiving another in return, often referring to the trade of goods, services, or financial instruments.

Functions Of Money

The core roles money plays in an economy, including serving as a medium of exchange, a unit of account, a store of value, and sometimes, a standard of deferred payment.

Medium Of Exchange

An intermediary instrument or system used to facilitate the sale, purchase, or trade of goods between parties.