Which of the Following Statements About a Cash Dividend Is

question 67

Multiple Choice

Which of the following statements about a cash dividend is incorrect?

• A) The legality of a cash dividend depends on state corporation laws.
• B) The legality of a dividend does not indicate a company's ability to pay a dividend.
• C) Dividends are not a liability until declared.
• D) Shareholders usually vote to determine the amount of income to be distributed in the form of a dividend.

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Definitions:

Highly Involved

Characterized by a significant or intense engagement or commitment to an activity, cause, or issue.

Sensation-Seeking

A trait defined by the search for experiences and feelings that are varied, novel, complex, and intense.

Hypnotic Responsiveness

The extent to which an individual is likely to experience suggested alterations in perception, sensation, emotion, thought, or behavior during hypnosis.