The Declaration and Payment of a Cash Dividend

question 88

Multiple Choice

The declaration and payment of a cash dividend

• A)reduces retained earnings and increases liabilities by the amount of the dividend.
• B)reduces retained earnings and increases contributed capital by the same amount.
• C)reduces assets and increases liabilities by the amount of the dividend.
• D)reduces both assets and retained earnings by the amount of the dividend.

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Definitions:

S-R Association Theory

A psychological theory suggesting that behavior is a result of the association between stimuli (S) and responses (R) learned through conditioning.

Social Learning

The process of learning behaviors through the observation of others, essential in understanding how people acquire new behaviors.

Operant Conditioning

An adjustment method in which behavior is strengthened or weakened by means of rewards or penalties.

Social Learning Theory

A theory that proposes individuals learn behaviors, values, and attitudes through observation of others, including modeling, imitation, and social reinforcement.