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:

Budget Lines

A graphical representation of all possible combinations of two goods that can be purchased with a fixed income.

Indifference Curves

Graphical representations of a consumer's preferences, showing different combinations of two goods between which the consumer is indifferent.

VCR

A video cassette recorder, a device once commonly used to play and record television programs and movies on magnetic tape.

Perfect Substitutes

Goods or services that can be used in exactly the same way, thus one can completely replace another in consumption.