The Declaration of Cash Dividends

question 88

Multiple Choice

The declaration of cash dividends

• A)increases total expenses.
• B)decreases current liabilities.
• C)decreases earnings per share.
• D)increases the debt/equity ratio.

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Definitions:

Held-to-Maturity Debt Securities

Financial instruments that a company has the positive intent and ability to hold until their maturity date.

Insignificant Influence

A situation where an investor cannot exert control or significant influence over the investee.

Stock Investments

Financial assets representing ownership in companies, which may yield dividends and have the potential for capital appreciation.

Imports Inventory

Imports inventory refers to goods and materials purchased from other countries for resale or use in production.