The Declaration of Dividends by a Company

question 24

Multiple Choice

The declaration of dividends by a company

• A) Always decreases the balance in Retained Earnings
• B) Always reduces the Cash balance
• C) Always increases the balance in Retained Earnings
• D) Always increases the balance in Common Stock

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Definitions:

Concrete Operational

A stage in Piaget's theory of cognitive development, occurring from about 7 to 11 years old, where children gain the ability to think logically about concrete events.

Preoperational

The stage in Piaget's theory of cognitive development in which children from about 2 to 7 years old develop memory and imagination, but do not yet think logically.

Formal Operational Thought

A stage of cognitive development in which individuals are able to think abstractly, reason logically, and manage problems systematically.

Logical

Pertaining to the use of reason and sound judgment in thinking or arguing.