In a Well-Managed Small Business, the Balance Sheet Is Not

question 55

True/False

In a well-managed small business, the balance sheet is not as important to the owner as the income statement.

---

Definitions:

Preferred Stock Dividends

Dividends that are paid to holders of preferred shares, typically at a fixed rate and before any dividends are paid to common shareholders.

Undeclared Dividends

Profits earned by a company that have not yet been announced to shareholders as dividends.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to vote on corporate policy and receive dividends.

Liquidation

The process of winding up a company's operations and distributing its assets to claimants, typically occurring when the company is insolvent.