The Declaration of a Cash Dividend

question 63

Multiple Choice

The declaration of a cash dividend:

• A) reduces liabilities and increases stockholders' equity.
• B) increases liabilities and reduces assets.
• C) increases liabilities and increases stockholders' equity.
• D) increases liabilities and decreases stockholders' equity.

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Definitions:

Financial Management

The practice of planning, directing, monitoring, organizing, and controlling the monetary resources of an organization or individual.

HR Management

The strategic approach to the effective management of people in an organization, focusing on policies and systems to improve employee performance and satisfaction.

Operations Management

The area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.

Routine

A sequence of actions regularly followed, forming a habitual or fixed procedure.