If the board of directors has not declared a dividend then no liability exists.
Correct Answer:
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Q44: Dividends in arrears are not considered a
Q45: A company may NOT declare a dividend
Q46: Companies must have enough cash before they
Q47: There is no obligation to pay dividends
Q48: Dividends are distributed from retained earnings.
Q50: A dividend is a pro rata distribution
Q51: When the retained earnings has a debit
Q52: Income tax expense is shown on the
Q53: Journal entries are made on the date
Q54: Income taxes only affect the income statement.
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