All of the Following Types of Dividends Will Result in an Increase

question 7

Multiple Choice

All of the following types of dividends will result in an increase in liabilities as a result of recording the declaration of a dividend except a (Assume the dividends are paid or distributed on a later date.)

• A)cash dividend
• B)property dividend
• C)scrip dividend
• D)stock dividend

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Definitions:

Future Outflow

Projected cash payments or disbursements that a business expects to incur as a result of current operations or future activities.

Resources

Resources are materials, energy, services, staff, or other assets that are utilized to produce goods and services, effectively supporting business operations.

External Users

Individuals or entities outside a company, such as investors, creditors, regulators, and customers, who use the company's financial information to make decisions.