A Feature Common to Both Share Splits and Share Dividends

question 75

Multiple Choice

A feature common to both share splits and share dividends is

• A)a transfer to earned capital of a corporation.
• B)that there is no effect on total equity.
• C)an increase in total liabilities of a corporation.
• D)a reduction in the contributed capital of a corporation.

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Definitions:

Single Life Annuity

An annuity that provides payments for the lifetime of the annuitant only, ceasing upon their death.

Annuity Contract

A financial product issued by an insurance company that offers fixed or variable payments to an individual, typically beginning at retirement.

Expected Return

The anticipated amount of profit or loss an investment is to generate over a specific time period.

SIMPLE Pension Plan

A retirement savings plan that allows employees and employers to contribute to individual retirement accounts (IRAs) setup for employees, typically suitable for small businesses.