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Which of the Following Is True of Dividends

Question 72

Multiple Choice

Which of the following is true of dividends?


A) Dividends are a distribution of cash, stock, or other assets to the stockholders.
B) Dividends increase assets and decrease total stockholders' equity of a corporation.
C) Dividend payments decrease paid-in capital.
D) Dividend payments increase stockholders' equity.

Correct Answer:

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