A Company Declares and Pays an Interim Dividend

question 11

Multiple Choice

A company declares and pays an interim dividend.This transaction will:

• A) decrease total assets and total shareholders' equity but have no effect on profit.
• B) decrease total assets,total shareholders' equity and profit.
• C) decrease total assets but have no effect on profit or shareholders' equity.
• D) none of the answers provided.

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Definitions:

Huntington Disease

A hereditary disorder caused by a genetic mutation, leading to the progressive degeneration of nerve cells in the brain.

Recessive Gene

A genetic trait that is expressed in an organism's phenotype only if two copies of the gene are present, but is masked if a dominant gene is present.

Dominant Gene

A gene that expresses its phenotypic trait even when only one copy is present in the genotype.

Recessive

A genetic term describing an allele that produces its characteristic phenotype only when its paired allele is identical.