Capital or Investment Processes

question 106

Multiple Choice

Capital or investment processes:

• A)Is a regular and frequent event.
• B)Only requires the specific approval of someone such as a senior accountant.
• C)Requires the specific approval of top management or board of directors.
• D)Can be considered revenue since it results in cash inflows.

---

Definitions:

Repurchase Shares

A corporate action where a company buys back its own shares from the marketplace, which can reduce the number of outstanding shares and potentially increase the value of remaining shares.

Stock Outstanding

The total shares of a corporation's stock currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

Rate

A measure often used in finance to denote a percentage charged or paid over time, such as an interest rate or growth rate.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability that excludes interest and income tax expenses.