Which of the Following Statements About the Declaration and Payment

question 203

Multiple Choice

Which of the following statements about the declaration and payment of cash dividends is correct?

• A)Declaration and payment of cash dividends will reduce the amount of net income.
• B)Declaration and payment of cash dividends will not reduce the Retained Earnings balance.
• C)Declaration and payment of cash dividends will reduce the amount of cash available to invest in assets.
• D)Declaration and payment of cash dividends is calculated on the amount of shares of stock issued,not the amount of shares outstanding.

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Definitions:

STD

Sexually transmitted diseases, infections passed from one person to another through sexual contact.

Latex Condoms

Barrier devices made of latex, designed to reduce the risk of sexually transmitted infections and prevent pregnancy.

Sexually Transmitted Diseases

Diseases spread by sexual activity, resulting from viruses, bacteria, or parasites.

Carriers

Individuals or entities that convey or transmit something, such as genetic traits or diseases, goods, or communications.