What Is a Dividend

question 2

Multiple Choice

What is a dividend?

• A) It is the face value of a stock.
• B) It is the first time a corporation offers stock for sale to the public.
• C) It is the term that describes the sum of the par value of the issued par value stock and the consideration received for the no-par stock.
• D) It is an inflated consideration that is in fact less than the par value of a stock.
• E) It is a share of the corporation's profits.

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Definitions:

Credit Side

The right side of an account record in double-entry bookkeeping, used to record increases in liability, equity, and revenue accounts, and decreases in asset and expense accounts.

Prepaid Expenses

Payments made in advance for goods or services to be received in the future, considered as a current asset on the balance sheet.

Expense

Money spent or cost incurred in an entity’s efforts to generate revenue, representing the cost of doing business.

Unearned Revenue

Money received by a company for goods or services yet to be provided, considered a liability until the service or product is delivered.