Which of the Following Statements Regarding the Date of a Cash

question 94

Multiple Choice

Which of the following statements regarding the date of a cash dividend declaration is not true?

• A)The dividend can be cancelled once it has been declared.
• B)The corporation is committed to a legal, binding obligation.
• C)The board of directors formally authorizes the cash dividend.
• D)A liability account must be created or increased.

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Definitions:

Schedule

A plan that outlines tasks, activities, or events, including their intended start and finish times, in a structured sequence.

Current Ratio

A financial metric indicating how well a company can fulfill its immediate liabilities, using the formula of dividing its current assets by its current liabilities, specifically for debts due within one year.

Account Balances

The amounts of money present in an account at a particular moment, reflecting all transactions.

Long-term Notes Payable

Loans or credit lines that are to be repaid over a period longer than one year.