The Following Statements Are True with Regards to Share Dividends

question 32

Multiple Choice

The following statements are true with regards to share dividends (bonus share issues) except:

• A) Shareholders are provided with additional shares without cost.
• B) They reduce total shareholder's equity.
• C) They involve a transfer of retained earnings or reserves to share capital.
• D) A bonus issue can only be made if the company has sufficient reserves.

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Definitions:

Transparent

An object or color's ability to pass light, making it possible to see through it or to see text, images, or objects behind it.

Darker

An option in software applications to increase the contrast or intensity of a color, making it closer to black.

Specified Number

A number that has been clearly identified or defined within a certain context, often used to denote a particular quantity, version, or identifier.