The Board of Directors of Knick Company Declared a Dividend

question 50

Multiple Choice

The board of directors of Knick Company declared a dividend. Later, the dividend was disbursed to stockholders. The dividend disbursement would:

• A) decrease net income
• B) decrease both net income and stockholders' equity
• C) decrease stockholders' equity
• D) None of these answers is correct.

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Definitions:

Laziness

A disinclination to activity or exertion despite having the ability to act or exert oneself.

Distractions

External or internal factors that divert an individual's attention away from their intended focus, potentially reducing the efficiency of cognitive tasks or activities.

Explanatory Style

A psychological attribute that indicates how people explain to themselves why they experience a particular event, either positively or negatively.

Delusion of Reference

A false belief that general occurrences, events, or interactions are uniquely related to oneself, often seen in psychiatric conditions like schizophrenia.