Acme Owns 4,000 Shares of XYZ

question 118

Multiple Choice

Acme owns 4,000 shares of XYZ.XYZ has 50,000 total shares of stock outstanding.XYZ paid $0.82 per share in cash dividends to its stockholders.Acme should record a:

• A)Debit to Dividends for $41,000.
• B)Debit to Dividends for $3,280.
• C)Debit to Cash for $3,280.
• D)Debit to Long-Term Investments for $3,280.
• E)Credit to Long-Term Investments for $3,280.

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Definitions:

Supplies Expense

Represents the cost of supplies used during an accounting period, differentiating from supplies bought but not yet used.

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been deducted from total revenue, a key indicator of financial performance.

CPA Services

Professional services offered by Certified Public Accountants, including auditing, tax preparation and planning, and financial consulting.

Accounts Receivable

Money owed to a company by its customers for products or services already delivered but not yet paid for.