Which of the Following Statements About Dividends Is $\bold{not}$ True?
A)Dividends Represent a Sharing of Corporate Profits with Owners

question 80

Multiple Choice

Which of the following statements about dividends is $\bold{not}$ true?

• A)Dividends represent a sharing of corporate profits with owners.
• B)Both stock dividends and cash dividends reduce retained earnings.
• C)Cash dividends paid to shareholders reduce net income.
• D)Dividends are declared at the discretion of the board of directors.

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Definitions:

Responsibility Accounting

An accounting system that collects, summarizes, and reports financial information related to the responsibilities of individual managers or departments.

Goal Congruence

The alignment of individual objectives and actions with the overall goals and objectives of an organization.

Performance Measures

Quantitative and qualitative metrics used to assess the effectiveness or efficiency of operations, employees, or overall organizational performance.

Transfer Price

The price charged for goods or services transferred between departments or divisions within the same company as part of the internal sales process.