Which of the following terms best describes a distribution of the net income of a corporation to its owners?
A)retained earnings
B)dividends
C)liquidation of assets
D)monetary unit

Question

Quizplus · Accepted Answer

Dividends are the distribution of the net income of a corporation to its owners, either in the form of cash or additional shares of stock. Retained earnings refer to the portion of the corporation's net income that is kept within the company for future investments or other purposes. Liquidation of assets refers to the selling off of a company's assets to pay off its debts or to distribute to its owners in the event of going out of business. Monetary unit is a term used in accounting to describe the currency or money unit used in financial reporting.

Which of the Following Terms Best Describes a Distribution of the Net