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CTP · Question #809

(Topic 9) Subtracting dividends from net income available to common shareholders is reflected as a change to which of the following balance sheet items?

The correct answer is D. Retained earnings. See the full explanation below for the reasoning.

Question

  • (Topic 9)

Subtracting dividends from net income available to common shareholders is reflected as a change to which of the following balance sheet items?

Options

  • ATreasury stock
  • BPaid-in capital
  • CCommon stock at par value
  • DRetained earnings

How the community answered

(52 responses)
  • A
    15% (8)
  • B
    4% (2)
  • C
    10% (5)
  • D
    71% (37)

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