Crimson Company Declared and Paid $1,000,000 in Dividends to the Common

question 37

Multiple Choice

Crimson Company declared and paid $1,000,000 in dividends to the common stockholders.The effect of this transaction is that the

• A)earnings per share decreased.
• B)current ratio increased.
• C)debt-to-equity ratio increased.
• D)earnings per share increased.

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Definitions:

Reciprocal Determinism

A concept in psychology that suggests individual behavior, personal factors, and the environment continually interact and influence each other.

External Locus

A belief system where individuals perceive outcomes in their life as resulting from forces outside their control.

Control

The ability to control or guide how people act or the direction in which things happen.

Behavior Modification

The use of empirically demonstrated behavior change techniques to improve behaviors, such as reinforcing desirable behaviors and reducing unwanted ones.