When a Company Pays a Dividend on Ordinary Shares, It

question 31

Multiple Choice

When a company pays a dividend on ordinary shares, it appears as [blank].

• A)an expense on the income statement
• B)a reduction in the amount of retained earnings
• C)a current liability on the balance sheet
• D)dividend payments have no effect on the financial statements

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Definitions:

Identification

The psychological process wherein an individual assimilates an aspect, property, or attribute of the other.

Diagnosis

The identification of the nature and cause of a certain phenomenon, often used in the context of medical conditions.

Etiology

Research focused on finding out what causes diseases or health conditions to occur.

Etiology

The study of the cause(s) of diseases and disorders.