Use the Information Below for Main Street Corp

question 89

Multiple Choice

Use the information below for Main Street Corp.for 2013 and 2014 to answer the following question. How much cash did Main Street pay for dividends during 2014?

• A)$ 95,000
• B)$105,000
• C)$115,000
• D)$140,000

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Definitions:

Gross Method

An accounting practice where purchase discounts are not taken into account in the inventory cost until they are actually realized.

Merchandise Inventory

The total value of a company's goods that are ready for sale to customers at any given time, including products bought for resale.

Accounts Payable

Liabilities representing amounts owed by an entity to suppliers or creditors for goods or services received but not yet paid for.

Multiple-Step Income Statements

A detailed financial statement that separates operating revenues and expenses from non-operating ones, showcasing multiple layers of profitability.