Which Statement Relating to Share Dividends (Bonus Share Issues) Is

question 42

Multiple Choice

Which statement relating to share dividends (bonus share issues) is incorrect?

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

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Definitions:

Perfume

A fragrant liquid typically made from essential oils or aroma compounds, fixatives, and solvents, used to give a pleasant scent to a person's body.

Allergies

Immune system responses to foreign substances that are typically harmless to the body, such as pollen, food, or dust.

Nausea

A sensation of discomfort in the stomach often accompanied by an urge to vomit.

American Medical Technologists (AMT)

A professional organization for allied health professionals that offers certification and continuing education.