Which of the following is not an inherent risk typically associated with the existence of dividends?
A)Dividends are recorded in the wrong period.
B)Dividends are recorded before declared.
C)Dividends are not properly amortized.
D)Dividends have not been approved before being declared.

Question

Quizplus · Accepted Answer

The other three choices are all inherent risks associated with dividends - dividends may be recorded incorrectly, before declaration, or without proper approval. However, dividends do not need to be amortized, as they represent a distribution of earnings rather than an asset that is subject to amortization.

Which of the Following Is Not an Inherent Risk Typically