Which of the Following Statements About Dividends Is Not Correct

question 87

Multiple Choice

Which of the following statements about dividends is not correct?

• A)Dividends represent a sharing of corporate profits with owners.
• B)Both stock dividends and cash dividends reduce Retained Earnings.
• C)Cash dividends paid to stockholders reduce net income.
• D)Dividends are declared at the discretion of the board of directors.

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Definitions:

Cue

A cue is a signal or stimulus that influences a person's behavior or actions, often utilized in advertising or product design to trigger consumer response.

Stimulus

Something that incites or provokes a physiological or psychological action or response.

Cue

A signal or prompt that induces a person to act or respond in a certain way, often used in behavior studies, marketing, and psychological contexts.

Response

The reaction or answer provided following a particular stimulus, inquiry, or situation.