Although a Corporation Does Not Have to Pay Dividends on Common

question 56

True/False

Although a corporation does not have to pay dividends on common stock, it is required to pay dividends on preferred stock.

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Definitions:

Checking Accounts

Bank accounts that allow the owner to make deposits, write checks, and withdraw funds with ease, typically used for daily transactions.

Liquid Investment Assets

Assets that can be quickly converted into cash with minimal impact on their price, such as stocks and bonds.

Internal Controls

Processes and procedures implemented to assure integrity and accuracy of financial and operational information, prevent fraud, and protect the assets of the organization.

Certification

The process of officially recognizing someone or something as having met certain standards through the issuance of a document or label.