Once a Corporation's Board of Directors Declares a Dividend,it Becomes

question 2

True/False

Once a corporation's board of directors declares a dividend,it becomes a corporate debt and is enforceable by law.

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Definitions:

Cash Proceeds

The amount of money received from transactions such as sales, financing, or the sale of assets.

Amortization

Amortization is the process of spreading the cost of an intangible asset over its useful life, similar to depreciation but for non-physical assets.

Gain

The financial benefit that occurs when the selling price of an asset exceeds its purchase price or carrying value.