A Company Declared and Paid Dividends of $1,300

question 100

Multiple Choice

A company declared and paid dividends of $1,300.How does this transaction affect the accounting equation?

• A)Add $1,300 to Revenue and add $1,300 to Cash.
• B)Add $1,300 to Dividends and add $1,300 to Accounts Receivable.
• C)Subtract $1,300 from Retained Earnings and subtract $1,300 from Cash.
• D)Add $1,300 to Dividend Expense and subtract $1,300 from Cash.

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Definitions:

Binomial Random Variable

A type of random variable that takes on a fixed number of possible outcomes, with each outcome having a constant probability of occurrence in each independent trial.

Normal Curve

A symmetric, bell-shaped curve representing the distribution of a set of data where most occurrences take place near the mean and probabilities for values taper off equally on both sides.

Continuity Correction

An adjustment made when approximating a discrete distribution with a continuous distribution.

Normal Approximation

A method of estimating the distribution of a sample statistic using the normal distribution, often applied when the sample size is large.