When it distributes a portion of its income to shareholders in the form of cash payments, a corporation pays out _____.
A)dividends
B)shares
C)allotments
D)capital surpluses

Question

Quizplus · Accepted Answer

When a corporation distributes a portion of its income to shareholders in the form of cash payments, it is known as paying out dividends. Shares, allotments, and capital surpluses are all other financial terms that do not apply to this specific situation.

When It Distributes a Portion of Its Income to Shareholders