The Declaration of a Cash Dividend Causes Shareholders' Equity to Decrease

question 15

True/False

The declaration of a cash dividend causes shareholders' equity to decrease but has no immediate effect upon corporate assets.

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Definitions:

Sensory Adaptation

A phenomenon of the sensory system in which sensitivity to a constant stimulus decreases over time.

Progressive Desensitization

A therapeutic method gradually exposing individuals to the things they fear in a controlled way to decrease their sensitivity.

Pragnanz

A principle from Gestalt psychology that suggests people will perceive and interpret ambiguous or complex images as the simplest form(s) possible.

False Alarm

An instance where a warning or signal is given for a danger or issue that does not actually exist.