The Payment of a Dividend

question 85

Multiple Choice

The payment of a dividend:

• A) reduces total shareholders' equity
• B) increases total shareholders' equity
• C) reduces total liabilities
• D) has no effect on total assets

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Definitions:

Resources

Assets, materials, and inputs needed for the production of goods and services, including time, labor, capital, and natural resources.

Excess Demand

A market condition where the quantity demanded of a good exceeds the quantity supplied, leading to shortages.

Good

A tangible item or product that fulfills a need or desire and is available for purchase.

Price Ceiling

A price ceiling is a government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers from high prices.