When a Corporation Declares a Dividend

question 27

Multiple Choice

When a corporation declares a dividend:

• A)Assets decrease,liabilities increase.
• B)Retained earnings increase,liabilities increase.
• C)Liabilities increase,retained earnings decrease.
• D)Retained earnings decrease,assets increase.

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Definitions:

Foreign Corrupt Practices Act

A United States law aimed at preventing American companies from engaging in bribery and other unethical practices in foreign countries to obtain or retain business.

Facilitation Payments

These are small sums of money paid to expedite or secure the performance of routine governmental actions by officials, often viewed as a form of bribery in many jurisdictions.

Cultural Differences

Variations in the norms, values, beliefs, and practices among different groups, societies, or individuals, arising from ethnic, racial, socioeconomic, geographical, or other distinctions.

Ethical Issues

Concerns or dilemmas that involve principles of right and wrong behavior.