Which of the Following Statements About Dividends Is TRUE

question 116

Multiple Choice

Which of the following statements about Dividends is TRUE?

• A) Dividends must be paid on an annual basis.
• B) Dividends increase both the assets and retained earnings of the corporation
• C) Dividends are the distribution of earnings to the shareholders, similar to withdrawals.
• D) Dividends are the bonuses paid to the corporation's board of directors.

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Definitions:

Financial Data

Quantitative information about financial conditions, performance, and transactions of a business, individual, or entity.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Financial Data

Information about financial transactions, including income, expenses, assets, and liabilities, used for analysis and decision-making.

Market Price

The existing rate for purchasing or selling an asset or service in the market.