The 2018 Statement of Cash Flows of Dickens Corporation Shows

question 27

Multiple Choice

The 2018 statement of cash flows of Dickens Corporation shows $500,000 cash paid for dividends.If dividends in Dickens' statement of retained earnings are reported at $550,000 then:

• A)Dickens' dividends payable account must amount to $50,000 at the end of 2018.
• B)Dickens' Cash account must have increased by $50,000 in 2018.
• C)Dickens' dividends payable account must have increased by $50,000 in 2018.
• D)Dickens' dividends payable account must have decreased by $50,000 in 2018.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Expected Price

The anticipated cost at which a commodity, asset, or service is thought to be bought or sold in the future.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance on overall portfolio returns.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets.