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Which of the Following Statements Is False

question 18

Multiple Choice

Which of the following statements is false?


Definitions:

Retained Earnings

Profits that a company retains for reinvestment rather than distributing to shareholders as dividends.

Dividends Payable

A liability account on a company’s balance sheet indicating the amount owed to shareholders in the form of dividends to be paid out.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which may lower the share price.

Par Value

The nominal or face value of a stock or bond, as stated in the corporate charter or on the certificate.

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