Which of the Following Statements Is CORRECT

question 117

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,its current assets as shown on the balance sheet will decline.
• C) If a company issues new long-term bonds to purchase fixed assets during the current year,its reported current assets and current liabilities at the end of the year will increase.
• 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:

Plutchik

Refers to Robert Plutchik, who is best known for proposing a psychoevolutionary theory of emotion that includes the famous wheel of emotions.

Facial Expression Of Disgust

A universal facial reaction indicating aversion, often characterized by a wrinkled nose, raised upper lip, and narrowed eyes.

Innate Reaction

A natural, automatic response to a stimulus that is inherent and not learned, often seen in instinctual behaviors.

Universally Recognized

Acknowledged or accepted by all as true, valid, or obligatory without exception across different cultures and societies.