Which One of the Following Statements Concerning Cash Dividends Is

question 120

Multiple Choice

Which one of the following statements concerning cash dividends is correct?

• A) The chief financial officer of a corporation determines whether or not a dividend will be paid.
• B) A dividend is not a liability of a firm until it has been declared.
• C) If a firm has paid regular quarterly dividends in the past it is legally obligated to continue doing so.
• D) Cash dividends always reduce the common stock account balance.
• E) The dividend yield expresses the dividend amount as a percentage of the net income.

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Definitions:

Generalizations

Statements or conclusions made on the basis of individual observations or experiences, extended to a broader context.

Human Communication

The process by which individuals exchange information, feelings, and meanings through verbal and non-verbal messages.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect in a particular situation, serving as a default position until evidence suggests otherwise.

Variables

Elements or factors that can change and potentially influence the outcome of research or an experiment.