Which of the Following Would Not Be Included in the Cash

question 111

Multiple Choice

Which of the following would not be included in the cash and cash equivalents amount reported on the balance sheet?

• A)Money market funds
• B)Checking accounts
• C)Treasury bills
• D)Notes receivable due in 90 days

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Definitions:

Dividend-payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, expressed as a percentage of the company’s total earnings.

Growth Rate

The rate at which a company, economy, or investment grows over a specific period, often expressed as a percentage.

Financial Leverage

Financial leverage is the use of borrowed funds to increase an investment's potential return, which also increases the risk of loss.

Dividend Discount Model

A method of valuing a company's stock price by using predicted dividends and discounting them back to present value.