A Declaration of Dividends Results in an Increase in Liabilities

question 44

True/False

A declaration of dividends results in an increase in liabilities and a decrease in shareholders' equity.

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Definitions:

Decentralisation

The distribution of decision-making power and operational responsibilities away from a central authority to lower levels in an organization.

Responsibility Accounting

An accounting system that collects, summarizes, and reports financial information related to the responsibilities of individual managers or departments.

Goal Congruence

The alignment of individual objectives and actions with the overall goals and objectives of an organization.

Performance Measures

Quantitative and qualitative metrics used to assess the effectiveness or efficiency of operations, employees, or overall organizational performance.