Whichnof the following statements about a cash dividend is incorrect? A. The legality of a cash...
Whichnof the following statements about a cash dividend is incorrect? A. The legality of a cash dividend depends on state corporation laws. B. The legality of a dividend does not indicate a company’s ability to pay a dividend. C. Dividends are not a liability until declared. D. Shareholders usually vote to determine the amount of income to be distributed in the form of a dividend.
Homework Answers
Option D is the answer
The legality of cash dividends depend on the government laws. Though the cash dividend will be the binding legal obligation on the declaration date, it's legality doesn't indicate a company's liability to pay dividend.
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balances...
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