Which of the Following Statements in Relation to Dividends Is

question 55

Multiple Choice

Which of the following statements in relation to dividends is true?

• A)Dividends represent drawings by the owners (shareholders)of the company.
• B)Dividends can be paid out of any equity account.
• C)Shareholders must be paid an annual dividend regardless of the type of share they hold.
• D)A company cannot declare both an interim and a final dividend.

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Definitions:

Igneous Feature

A geological formation that is formed from solidified magma or lava.

Laccolith

A dome-shaped igneous intrusion between rock layers, formed by the injection of magma.

Igneous Feature

A geological structure formed from the solidification of molten rock material, either below (intrusive) or on (extrusive) the Earth's surface.

Batholith

a large mass of intrusive igneous rock believed to have solidified deep beneath the Earth's surface.