The Payment of a Dividend Increases Both Cash and Shareholders

question 231

True/False

The payment of a dividend increases both cash and shareholders' equity of the distributing entity.

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Definitions:

Cathode

The electrode through which electrons leave an electrical device or where reduction reactions occur in an electrolytic cell.

Current Flow

The movement of electric charge through a conductor, typically measured in amperes.

Series Circuit

An electrical circuit in which components are connected end-to-end, forming a single path for current flow.

Wool Sweater

A clothing item knitted from wool yarn, known for its warmth and moisture-wicking properties.