Use the Following to Answer Questions

question 152

Multiple Choice

Use the following to answer questions
The 12/31/2016 balance sheet of Despot Inc.included the following:

-Despot declared a property dividend to give marketable securities to its common stockholders.The securities had cost Despot $7 million and currently have a fair value of $16 million.Which of the following would be included in recording the property dividend declaration?

• A)Increase in a liability for $16 million.
• B)Decrease in retained earnings for $7 million.
• C)Decrease in marketable securities by $16 million.
• D)All of these answer choices are correct.

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Definitions:

Confidence Interval

A variety of values, based on statistics from a sample, which is conjectured to envelop an obscure population parameter.

P-value

A statistical concept indicating the probability of observing data as extreme as those seen, if the null hypothesis were true, used in hypothesis testing.

Maximum Oxygen Uptake

The highest amount of oxygen an individual can utilize during intense or maximal exercise, indicating aerobic endurance capacity.

Normal Distribution

A bell-shaped curve, which is symmetric about the mean, depicting the distribution of many types of data.