**Question:**Which of the following is not one of the primary considerations management must make before a cash dividend is declared?**Options:**- ○ The availability of funds to pay the dividend.- ● The effect of inflation on the company and alternative uses of the cash to be paid for dividends.- ○ The legal permissibility of the dividend.- ○ The tax impact on stockholders of the receipt of the dividends.**Explanation:**The option with a filled circle next to it (●) indicates the correct answer, which is "The effect of inflation on the company and alternative uses of the cash to be paid for dividends." This implies that this is not a primary consideration before declaring a cash dividend, whereas the other options are likely to be more immediate concerns for management.

Which of the following is not one of the primary considerations management must make before a cash dividend is declared? O The availability of funds to pay the dividend. O The effect of inflation on the company and alternative uses of the cash to be paid for dividends. The legal permissability of the dividend. O The tax impact on stockholders of the receipt of the dividends.

Which of the following is not one of the primary considerations management must make before a cash dividend is declared? O The availability of funds to pay the dividend. O The effect of inflation on the company and alternative uses of the cash to be paid for dividends. The legal permissability of the dividend. O The tax impact on stockholders of the receipt of the dividends.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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