Which of the Following Statements Regarding the Date of a Cash

question 112

Multiple Choice

Which of the following statements regarding the date of a cash dividend declaration is not accurate?

• A) The dividend can be rescinded once it has been declared.
• B) The corporation is committed to a legal binding obligation.
• C) The board of directors formally authorizes the cash dividend.
• D) A liability account must be increased.

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Definitions:

Severance

An owner’s removal of chattel that he has affixed; separation or division of joint ownership; action by one of the co-owners that is inconsistent with joint tenancy.

Joint Ownership

Shared ownership of property by two or more parties where all owners have equal rights and obligations regarding the property.

Right Of Way

A type of easement that allows the crossing of another’s land.

Prescription

An authorized written instruction from a medical practitioner for the preparation and administration of a medicine or medical device.