QUESTION $16$

Which of the following statements is CORRECT?

a$.$ Dividends paid reduce the net income that is reported on a company's income statement.

b$.$ If a company uses some of its bank deposits to buy short$-$term, highly liquid marketable securities$,$ its current assets as shown on the balance sheet will decline.

c$.$ Accounts receivable are reported as a current liability on the balance sheet.

d$.$ If a company pays more in dividends than it generates in net income, its retained earnings as reported on the balance sheet will decline from the previous year's

balance.

e$.$ If a company issues new long$-$term bonds to purchase fixed assets during the current year, its reported current assets and current liabilities at the end of the year

will increase.