Which of the Following Is TRUE of Dividends

question 168

Multiple Choice

Which of the following is TRUE of dividends?

• A) Dividends are a distribution of cash, stock, or other property to stockholders.
• B) Dividends increase assets and decrease total stockholders' equity of a corporation.
• C) Dividend payments decrease paid-in capital.
• D) Dividend payments increase stockholders' equity.

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Definitions:

Completeness

The state of being whole and finished, with no missing parts or aspects.

Ethics Planning

The process of developing strategies and policies that guide individuals or organizations in ethical decision-making and behavior.

Unethical Conduct

Behavior that does not conform to accepted standards of morality or integrity within a professional or organizational context.