Which of the Following Is Not an Inherent Risk Typically

question 65

Multiple Choice

Which of the following is not an inherent risk typically associated with the existence of dividends?

• A)Dividends are recorded in the wrong period.
• B)Dividends are recorded before declared.
• C)Dividends are not properly amortized.
• D)Dividends have not been approved before being declared.

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Definitions:

Insider Trading

Engaging in stock exchange transactions for personal benefit by exploiting confidential information, an act considered illegal.

Securities Exchange Act

A U.S. law regulating the trading of securities, aimed at protecting investors and maintaining fair and efficient markets.

Tipper

An individual who provides privileged, non-public information to another person, typically about securities trading.

Tippee

A person who receives inside information.