All of the Following Statements Regarding Share Dividends Are Except

question 146

Multiple Choice

All of the following statements regarding share dividends are except:

• A) Directors can use share dividends to keep the market price of the shares affordable.
• B) Share dividends provide evidence of management's confidence that the company is doing well.
• C) Share dividends do not reduce assets or equity.
• D) Share dividends decrease the number of shares outstanding.
• E) Share dividends transfer a portion of equity from retained earnings to contributed capital.

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Definitions:

Multiple Intelligences

A theory proposed by Howard Gardner that suggests individuals have different kinds of intelligences, such as linguistic, logical-mathematical, musical, bodily-kinesthetic, spatial, interpersonal, intrapersonal, and naturalist.

Analytical Intelligence

The ability to analyze, evaluate, judge, or compare and contrast information.

Bodily-kinesthetic

Pertains to the intelligence that involves the use of the body to express oneself, solve problems, and manipulate objects, emphasizing physical coordination and skill.

Linguistic

Pertains to the study and structure of language, including its development, use, and relation to communication processes.