Which of the Following Is NOT True with Respect to Bonus

question 29

Multiple Choice

Which of the following is NOT true with respect to bonus shares? They:

• A) increase net assets
• B) have no effect on cash balances
• C) give directors the opportunity to signal future dividend policy to current and future shareholders
• D) make shares 'seem' more affordable,as on a per-share basis they are cheaper.

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Definitions:

Sales

The total revenue generated from the sale of goods or services by a company during a specified period.

Warranty Obligations

Commitments made by a seller to repair, replace, or refund products that fail within a certain period.

Warranty Expense

Expenses a business faces for the repair or replacement of products covered by warranty.

Sales

The total revenue generated from selling goods or services over a specific period of time.