Which of the Following Statements Is True Regarding Dividend Income

question 77

Multiple Choice

Which of the following statements is true regarding dividend income?

• A)Dividend income is accrued at year-end.
• B)Dividend income is reported on the income statement.
• C)Dividend income appears in the Stockholders' Equity section of the balance sheet.
• D)Dividend income is recognized by companies that own debt securities.

---

Definitions:

Cash Paid

Cash paid encompasses any outflow of cash from a company or individual for various purposes, including expenses, acquisitions, or investments.

Suppliers

Entities that provide goods or services to another entity, typically a company, under terms outlined in a contract or agreement.

Salaries Payable

An account that records the amounts owed to employees for work performed but not yet paid.

Salary Expense

Salary expense is the cost incurred by a business to compensate its employees, including wages, salaries, and other forms of compensation.