If a Dividend Is Declared by a Subsidiary in the Current

question 10

Multiple Choice

If a dividend is declared by a subsidiary in the current period after its acquisition by the parent but is not paid, from the outlook of the group:

• A)Equity does not decrease.
• B)Liabilities increase.
• C)Receivables increase.
• D)Revenue increases.

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Definitions:

Legal

Pertaining to the law or the system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.

Pay Plan

A structured compensation system for employees that outlines the wages, salaries, benefits, and incentives offered by an employer.

Skill-based Pay Plans

Compensation systems that determine employees' pay rates based on their skills, knowledge, or proficiency rather than job titles or positions.

Pay-for-skills

A compensation strategy where employees are paid based on the variety and depth of skills they bring to their role, rather than their job title alone.