Which One of the Following Is NOT Necessary in Order

question 134

Multiple Choice

Which one of the following is NOT necessary in order for a corporation to pay a cash dividend?

• A) adequate cash
• B) approval of shareholders
• C) declaration of dividends by the board of directors
• D) retained earnings

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Definitions:

Perpetual Inventory System

An accounting technique that utilizes computerized point-of-sale systems and enterprise asset management software to immediately record inventory transactions upon sale or purchase.

Merchandise

Goods or products that are bought and sold in retail or wholesale in the business.

Sales Discounts

Reductions in the selling price offered to customers, often as an incentive to encourage prompt payment.

Cash Discount

A deduction from the total amount on an invoice allowed by a vendor to encourage prompt payment.