Which of the Following Is False Regarding the Issue of Stock

question 140

Multiple Choice

Which of the following is false regarding the issue of stock versus the issue of bonds to raise capital?

• A)The payment of dividends is at the discretion of the board of directors.
• B)The payment of interest on bonds payable is required by law.
• C)Interest accrues,whereas dividends do not accrue.
• D)The declaration of dividends reduces the amount of income taxes the corporation must pay.

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Definitions:

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured or reimburses them for expenses from illnesses or injuries.

Workers' Compensation Insurance

Insurance that provides medical benefits and wage replacement to employees injured on the job.

FUTA

This Act enforces a payroll tax on enterprises to finance state labor agencies, known as the Federal Unemployment Tax Act.

SUTA

State Unemployment Tax Act, which mandates unemployment insurance taxes that employers must pay.