Declaration of a Cash Dividend Causes

question 58

Multiple Choice

Declaration of a cash dividend causes:

• A)an increase in stockholders' equity.
• B)an increase in cash.
• C)an increase in liabilities.
• D)None of these answers are correct.

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Definitions:

Inductive Approach

A method of reasoning that creates general principles from specific observations, often used in scientific and empirical research.

Polygraphs

Devices used in an attempt to detect lies, measuring physiological responses believed to be indicators of truthfulness or deception.

Perspiration

The process of sweating, where the body excretes water and salts through the skin primarily to regulate body temperature.

Heart Rate

The number of times a person's heart beats per minute, indicating cardiovascular health and fitness levels.