Which of the Following Is a True Statement About Dividends

question 133

Multiple Choice

Which of the following is a true statement about dividends?

• A)Dividends are not based on earnings.
• B)All companies pay dividends.
• C)Dividends are based on the number of shares.
• D)Dividends are paid by older, established companies.

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Definitions:

Voucher System

A financial control mechanism in accounting where vouchers are created for each transaction, and supporting documents are required for authorization before payment.

Bank Statement

A summary of financial transactions which have occurred over a given period on a bank account held by a person or business with a financial institution.

Deposits

Funds placed into a bank account or with some other entity for safekeeping, which can include money put in savings or checking accounts.

Electronic Funds Transfers

The electronic transfer of money between accounts by consumer electronic systems rather than the exchange of cash, checks, or other paper documents.