A Corporation Had the Following Account Balances on December 31

question 53

Multiple Choice

A corporation had the following account balances on December 31: $$\begin{array} { | l | l | l | l | } \hline \text { Assets } & & \text { Equities } & \\\hline \text { Cash } & \$ 10 & \text { Accounts payable } & \$ 2 \\\hline \text { Accounts receivable } & 8 & \text { Wages pay able } & 12 \\\hline \text { Inentory } & 16 & \text { Common shares } & 48 \\\hline \text { Machinery } & 42 & \text { Retained earnings appropriated tor bond } & \\\hline & & \text { Sinking fund } & 8 \\\hline & \$ 76 & \text { Retained earnings unappropriated } & 6 \\\hline & & & \$ 76 \\\hline\end{array}$$ The maximum amount of cash dividends that could be declared on this date is:

• A) $6
• B) $10
• C) $14
• D) $76

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Definitions:

Sweat Glands

Specialized glands found in the skin that produce sweat as part of the body's mechanism for temperature regulation and excretion.

Simple Cuboidal Epithelia

A type of single-layered epithelial tissue that has cube-shaped cells, commonly found lining glands and ducts.

Cube-Shaped Cells

Epithelial cells that have approximately equal height, width, and depth, resembling the shape of a cube, often found in glandular tissues.

Pseudostratified Columnar

A type of epithelial tissue with cells of varying heights that appear to be stratified but are actually a single layer.