Which of the Following Is True of Dividends Paid to Shareholders

question 9

Multiple Choice

Which of the following is true of dividends paid to shareholders?

• A)Dividends can be paid in the form of property manufactured by another organization.
• B)Cash dividends can be declared and then rescinded by the directors.
• C)Dividends can be paid with stock a corporation owns in another company.
• D)Stock dividends cannot be rescinded once declared.

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Definitions:

Overstated

An accounting term used when the reported value of a financial statement element is higher than its true value.

Understated

Describes an amount reported in financial statements that is less than the true, fair, or actual amount.

Feminization of Love

The concept that societal norms and expectations often frame love as an emotion more naturally expressed or valued by women.

Breadwinner Fallacy

The incorrect assumption that the person who earns the most money in the household should also bear the greatest responsibility for financial decisions or the welfare of the family.