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:

Operating Budget

A detailed projection of all anticipated income and expenses based on forecasted sales revenue during a certain period, usually one fiscal year.

Allocating Equipment

The process of distributing machinery, tools, or devices to areas or individuals where they are needed, based on an assessment of demand and available resources.

Construction Projects

Structured endeavors with a defined beginning and end, undertaken to create unique products, services, or results in the field of construction.

Single-use Plan

A strategy designed to address a specific, one-time issue or problem, not intended for repeated use.