Which of the Following Statements Is FALSE

question 90

Multiple Choice

Which of the following statements is FALSE?

• A) Occasionally, a firm may pay a one-time, special dividend that is usually much larger than a regular dividend.
• B) Most companies that pay dividends pay them semiannually.
• C) From an accounting perspective, dividends generally reduce the firm's current (or accumulated) retained earnings.
• D) The way a firm chooses between paying dividends and retaining earnings is referred to as its payout policy.

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Definitions:

Reconstruction Policy

Refers to the strategies and laws implemented in the United States after the Civil War (1865-1877) aimed at rebuilding and reinstating the Southern states while transforming society and ensuring the rights of freed slaves.

Southern States

Geographic regions located in the southern part of a country, often characterized by unique cultural, economic, and historical traits.

Congressional Representation

The system by which people in the United States elect representatives to the Congress, based on population, to voice their interests and concerns.

Civil War

A war between groups within the same country or state, often characterized by a struggle for power, independence, or social reform.