Which one of the following statements is NOT true relating to dividends? 1. Dividends are a portion of the profit of a company divided amongst the shareholders. 2. Dividends need not be declared solely from the profit of the current year and can include profits from previous trading periods, included in retained income. 3. Dividends can only be declared if approved by the shareholders through their voting rights. 4. Dividends need only be paid out in cash and cannot be in the form of capitalization shares.
Which one of the following statements is NOT true relating to dividends? 1. Dividends are a portion of the profit of a company divided amongst the shareholders. 2. Dividends need not be declared solely from the profit of the current year and can include profits from previous trading periods, included in retained income. 3. Dividends can only be declared if approved by the shareholders through their voting rights. 4. Dividends need only be paid out in cash and cannot be in the form of capitalization shares.
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 14MC: Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a...
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