Cash distributions authorised by the directors and paid to the owners of a company are called:
A) distributions.
B) bonuses.
C) accumulated profits.
D) dividends.

Question

Quizplus · Accepted Answer

Cash distributions authorised by the directors and paid to the owners of a company are called dividends. Bonuses are payments made to employees, accumulated profits are retained earnings not yet distributed to shareholders, and distributions are a more general term that can refer to any type of payment made by a company to its owners or investors.

Cash Distributions Authorised by the Directors and Paid to the Owners