Which of the Following Is True About Dividends

question 85

Multiple Choice

Which of the following is true about dividends?

• A) Dividends are paid at the discretion of the shareholders.
• B) Dividends cannot be used for corporate purposes.
• C) Dividends are paid to shareholders who have sold their shares prior to the record date.
• D) Dividends once declared, cannot be revoked.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the issuing entity's records but have not yet been cashed or deposited by the recipient.

Cash Overage

A situation where the actual cash on hand exceeds the expected amount, often due to errors in handling or recording.

Shortage

A situation where the demand for a product or resource exceeds the available supply.

Internal Control

Processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.