Payments to shareholders are called: Group of answer choices expenses. liabilities. dividends. liabilities.
Question
Payments to shareholders are called: Group of answer choices
expenses.
liabilities.
dividends.
liabilities.
Solution
Payments to shareholders are called:
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Not expenses. Expenses are the costs incurred in the process of earning revenue.
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Not liabilities. Liabilities are the debts or obligations that a company owes.
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Dividends. This is the correct answer. Dividends are payments made by a corporation to its shareholders, usually in the form of cash or additional shares.
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Not liabilities. This option is repeated and as mentioned before, liabilities are the debts or obligations that a company owes, not the payments made to shareholders.
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