Which of the Following Cash Flow Statements Is FALSE

question 35

Multiple Choice

Which of the following cash flow statements is FALSE?

• A)From an accounting perspective, dividends generally reduce the firm's current (or accumulated)retained earnings.
• B)Occasionally, a firm may pay a one-time, special dividend that is usually much larger than a regular dividend.
• C)Most companies that pay dividends pay them semi-annually.
• D)The way a firm chooses between paying dividends and retaining earnings is referred to as its 'payout policy'.

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Definitions:

Charged Differently

A scenario where different prices are applied for the same service or product to different customers or in different circumstances.

Transferable Emissions Permit

A market-based instrument that allows the holder the right to emit a certain amount of pollutants, which can be traded with other emitters for flexibility in regulatory compliance.

Emissions

The release of gases or other substances into the environment, often associated with industrial processes, transportation, and other sources of pollution.

Emissions Fee

A charge imposed on the emission of pollutants, aimed at reducing environmental harm.