If a Corporation Distributes Cash to Its Stockholders, Then

question 70

Multiple Choice

If a corporation distributes cash to its stockholders, then

• A)there has been a violation of accounting principles.
• B)stockholders' equity will increase.
• C)stockholders' equity will decrease.
• D)there will be a new liability showing the stockholders owe money to the business.

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Definitions:

Accessibility

The ease with which people can reach or use a place, service, or information, often focused on removing barriers for all individuals, including those with disabilities.

Handguns

Firearms designed to be held and operated with one hand.

Poverty

The condition of lacking sufficient financial resources or income to meet basic needs such as food, housing, and healthcare.

Race

A social construct that categorizes people based on physical characteristics, such as skin color, perceived to signify distinct populations.