Dividends Are Declared Out of Retained Earnings

question 38

True/False

Dividends are declared out of retained earnings.

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Definitions:

Intuition

The ability to understand something immediately, without the need for conscious reasoning, a "gut feeling."

Educated Guesses

Assumptions based on knowledge, experience, and logical reasoning, but without absolute certainty.

Hunches

Intuitive feelings or guesses without conscious reasoning, often based on experience.

Bounded Rationality

The concept that individuals make decisions based on the limited information available to them and their cognitive limitations.