Which of the Following Statements Is CORRECT

question 34

Multiple Choice

Which of the following statements is CORRECT?

• A)Dividends paid reduce the net income that is reported on a company's income statement.
• B)If a company uses some of its bank deposits to buy short-term, highly liquid marketable securities, this will cause a decline in its current assets as shown on the balance sheet.
• C)If a company issues new long-term bonds to purchase fixed assets during the current year, this will increase both its reported current assets and current liabilities at the end of the year.
• D)Accounts receivable are reported as a current liability on the balance sheet.
• E)If a company pays more in dividends than it generates in net income, its retained earnings as reported on the balance sheet will decline from the previous year's balance.

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Definitions:

Hawthorne

Nathaniel Hawthorne, an American novelist and short story writer, known for his dark romanticism and works such as "The Scarlet Letter" and "The House of the Seven Gables."

Morality

Principles concerning the distinction between right and wrong or good and bad behavior; the goodness or badness of human character.

Perceptual Constancy

The psychological feature that allows the perception of an object to remain relatively unchanged despite variations in the viewing conditions like distance or lighting.

Accommodation

In cognitive psychology, the process by which an individual revises existing cognitive schemas, perceptions, and understanding so that new information can be incorporated.