Statement I

question 62

Multiple Choice

Statement I.One unintended side effect of the Welfare Reform Act of 1996 was that the new rules may intimidate the number of eligible Americans from trying to receive food stamps and Medicaid.
Statement II: In 1996,for the first time since 1935,the federal government no longer guaranteed support to all America's children.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, also known as shareholders' equity.

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

Dividends Payable

Dividends payable are a liability on a company's balance sheet representing the amount of dividends that the company has declared but has not yet paid out to its shareholders.