If Golden Corporation Declared a Dividend to Its Shareholders Which

question 80

Multiple Choice

If Golden Corporation declared a dividend to its shareholders which has not been paid,this would

• A)increase liabilities.
• B)increase shareholders' equity.
• C)decrease liabilities.
• D)increase assets.

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Definitions:

Redeemed

In finance, it refers to the repayment or buyback of a debt or security, such as a bond or a share, usually at the maturity date or beforehand.

Semiannual Interest

Interest that is calculated and paid twice a year on an investment or loan.

Bond Discount

The financial difference that arises when a bond is sold for an amount below its official face value.

Straight-line Method

A technique for determining depreciation or amortization by uniformly distributing the asset’s cost throughout its lifespan.