Which of the Following Is True of Dividends

question 97

Multiple Choice

Which of the following is true of dividends?

• A)Dividends are a distribution of cash, stock, or other assets to the stockholders.
• B)Dividends increase assets and decrease total stockholders' equity of a corporation.
• C)Dividend payments decrease paid-in capital.
• D)Dividend payments increase stockholders' equity.

---

Definitions:

X-bar Chart

A type of control chart used in statistical process control for monitoring the mean values of a sample over time to detect any significant process changes.

Acceptance Sampling

A statistical quality control method where a random sample of items from a lot is inspected to determine if the entire lot should be accepted or rejected.

Process Control

The practice of managing and maintaining the variables within a production process to ensure the output meets the desired criteria.

Sample Averages

The mean values calculated from subsets of a larger population or dataset to represent or estimate the population's characteristics.