Which of the Following Is TRUE of Dividends

question 19

Multiple Choice

Which of the following is TRUE of dividends?

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

---

Definitions:

Time-Driven Activity-Based Costing

A costing method that assigns costs to products based on the estimated time activities take and the cost of performing those activities.

Customer Service Department

A division within a company that handles inquiries, supports customers post-purchase, and resolves any issues or complaints.

Capacity Analysis

The assessment of the production capabilities of a business to determine how efficiently it can meet its production targets.

Time-Driven Activity-Based Costing

Time-driven activity-based costing is an approach to costing that assigns resource costs directly to products or services based on the actual time spent on activities, improving accuracy and simplifying the costing process.