Which Statement Is Correct

question 2

Multiple Choice

Which statement is correct?

• A)Dividends are never discretionary payments.
• B)A corporation need only pay dividends when it declares them to be payable.
• C)A company can avoid a cumulative dividend on preferred shares if it declares dividends on common shares.
• D)Companies must pay the shareholders interest to compensate for the time value of money lost on the deferral of dividend payments.

Understand how to record transactions using general journal entries.

Identify and analyze accounting transactions and their impact on the accounting equation.

Calculate and interpret the cash account balance changes.

Understand the impact of stockholder investments and dividends on financial statements.

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Definitions:

Attitude Formation

The process by which individuals develop their viewpoints and feelings towards objects, people, or events.

Direct Contact

Interaction that involves physical touch or the immediate proximity between individuals, allowing for the transfer of substances or communication.

Direct Instruction

A teacher-centered education approach focused on structured, systematic instruction with clear objectives and outcomes.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.