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    Question

    Who has the authority to declare dividends?

    A Board committee Correct Answer Incorrect Answer
    B Board of Directors Correct Answer Incorrect Answer
    C Members Correct Answer Incorrect Answer
    D Shareholders Correct Answer Incorrect Answer

    Solution

    When the board of directors makes such a decision and declares a dividend for payment to stockholders, the retained earnings account on the company's balance sheet is reduced by the amount of the declared dividend. The retained earnings is an account of equity that shows the net balance of a company's earnings

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