Payment of a Dividend Increases Both Cash and Stockholders' Equity

question 107

True/False

Payment of a dividend increases both cash and stockholders' equity of the distributing business.

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Definitions:

Personal Liability

Legal responsibility of an individual to fulfill debts or obligations from his or her own assets.

Sixth Amendment

A provision in the United States Constitution guaranteeing the rights of criminal defendants, including a speedy trial and legal representation.

Speedy Trial

A legal right guaranteeing accused individuals a swift trial to avoid undue or prolonged incarceration without conviction.

United States Constitution

The supreme law of the United States that establishes the national framework of government and the fundamental rights of citizens.