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:

Simp

A slang term often used to describe someone who performs excessive sympathy or attention towards another person, often without reciprocation.

Inference Forms

Patterns or templates of reasoning that show the logical connection between premises and conclusion.

MP

An abbreviation that could refer to Modus Ponens, a logical form where from premises of the form "If P, then Q" and "P", it's concluded that "Q".

MT

Another term for Modus Tollens, it is the form of logical argument implying the inverse of a conclusion based on the negation of its consequence.