QUESTION 45 Which is FALSE related to dividends O Dividends are expenses O Dividends reduce retained earnings Dividends cannot cause retained earnings to be a deficit (go negative) O A cash dividend must be declared by the board of directors QUESTION 46 a Which of the following is a reason for a corporation to buy back its own stock O a. To increase liquidity b. To increase solvency O c. To increase the shares outstanding O d. To provide shares for resale to employees