A Declaration of Dividends Results in an Increase in Liabilities

question 44

True/False

A declaration of dividends results in an increase in liabilities and a decrease in shareholders' equity.

---

Definitions:

Central Nervous System

The complex of nerve tissues that controls the activities of the body. In vertebrates it comprises the brain and spinal cord.

Sympathetic Nervous System

Part of the autonomic nervous system that regulates involuntary responses by stimulating activities associated with the fight-or-flight response.

Endocrine System

A network of glands that produce and release hormones to regulate various body functions including metabolism, growth, and mood.

Glands

Organs in the body that secrete hormones or other substances directly into the blood or onto a surface within or outside the body.