If Llama Company Has Paid Out More in Dividends Than

question 41

Multiple Choice

If Llama Company has paid out more in dividends than it has had in net income, over the lifetime of the company, then the balances in the Stockholders' Equity should show:

• A)a debit balance in the Retained Earnings account.
• B)a credit balance in the Retained Earnings account.
• C)a debit balance in the Common Stock account.
• D)a credit balance in the Common Stock account.

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