Dividends Is A(n) ________ Account That Has a Normal ________

question 186

Multiple Choice

Dividends is a(n) ________ account that has a normal ________ balance.

• A) liability; credit
• B) equity; debit
• C) liability; debit
• D) equity; credit

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Definitions:

Perfected Security Interest

A legal claim or lien that has been formally established or registered, providing a creditor priority over other claimants in case of debtor default.

Bankruptcy

A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).

Superior Rights

Superior rights denote a higher or preeminent claim or entitlement to property, benefits, or legal priority over others.

After-Acquired Property Clause

A provision in a legal agreement that allows a creditor to claim ownership of assets acquired by the debtor after the signing of the agreement.