When a Corporation Pays a Dividend,the

question 63

Multiple Choice

When a corporation pays a dividend,the

• A)expense account will be increased with a debit.
• B)dividends account will be increased with a credit.
• C)retained earnings account will be directly increased with a debit.
• D)dividends account will be increased with a debit.

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Definitions:

Time To Expiration

The remaining period until the expiration date of a financial instrument, typically an option or futures contract.

Option's Intrinsic Value

The difference between the current price of the underlying asset and the strike price of an option, assuming the option is in-the-money.

Strike Value

The predetermined price at which the holder of an option can buy (call option) or sell (put option) the underlying asset.

Market Value

The present cost at which a service or asset is available for purchase or sale in a free market.