Which of the Following Statements About Dividends Is Not True

question 37

Multiple Choice

Which of the following statements about dividends is not true?

• A)Dividends Declared has a debit balance.
• B)Dividends reduce retained earnings.
• C)Dividends Declared is an expense.
• D)Dividends Declared is a balance sheet account.

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Definitions:

Deadweight Loss

A societal expense caused by disruptions in the marketplace, happening when there's a discrepancy between supply and demand levels.

Free-Trade Policy

A policy to eliminate import/export restrictions or tariffs among countries, facilitating a more free flow of goods and services across borders.

Exporting Steel

The process of producing steel in one country and selling it to buyers in another country.

Importing Incense

The process of bringing incense from foreign countries into one's own country for use, resale, or distribution.