The Declaration and Payment of a Cash or Property Dividend

question 74

Multiple Choice

The declaration and payment of a cash or property dividend requires:

• A) an appropriation of retained earnings.
• B) the distribution of a current asset.
• C) a reduction of both retained earnings and assets.
• D) a decrease in retained earnings and a change in contributed (paid-in) capital.

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Definitions:

Net Revenue

The total income generated from business activities after subtracting the costs of goods sold and operational expenses.

Expected Value

A calculated average outcome of a random variable, taking into account all possible values and their probabilities.

Sample Information

Data or observations collected from a subset of a larger population, used to estimate or infer characteristics about the whole population.

EMV

Expected Monetary Value; a financial concept that calculates the average outcome when the future includes scenarios that may or may not happen.