Final answer:
The incorrect statement about dividends is that they must be paid in the period declared. Dividends can be declared with a specified future payment date, and other options correctly describe the necessary compliance, governance, and financial considerations for dividend declarations.
Step-by-step explanation:
The statement among the options provided regarding dividends that is incorrect is: a) Dividends must be paid in the period declared. Dividends do not necessarily have to be paid within the same period they are declared; a company may declare a dividend at one time and specify a future date on which the dividend will be paid. The other statements are correct: b) Distributions to owners must be in compliance with the state laws, ensuring legal conformity; c) Dividends must be declared by the Board of Directors, which highlights the governance aspect of dividend declarations; and d) Before declaring a dividend, management must consider the availability of funds to pay the dividend, which pertains to the company's financial health and responsibility to maintain adequate capital.
The statement that is incorrect related to dividends is: a) Dividends must be paid in the period declared. Dividends are the profits distributed to shareholders of a company. While a company may declare a dividend in a specific period, the actual payment of the dividend may occur at a later date. Therefore, dividends do not necessarily have to be paid in the period declared.