Which of the Following Is True

question 18

Multiple Choice

Which of the following is true?

• A)The declaration of a stock dividend gives rise to a liability.
• B)Stock dividends are revocable by the board of directors at any time before they are issued.
• C)Undeclared dividends in arrears on cumulative preferred shares are recorded as a liability.
• D)No note disclosure is required for the declaration of a stock split.

---

Definitions:

Legitimate Authority

The rightful or morally justified power held by an entity or individual, which is recognized and followed by others.

Unconscious Desire

Wishes or wants that influence behavior without becoming part of conscious awareness.

Ethical Concerns

Considerations related to determining what is right or wrong in a moral sense, often applied in professional and personal decision-making.

Psychological Study

The scientific research and analysis of human behavior, emotions, and mental processes.