Which of the Following Is a Key Outcome for Directors

question 38

Multiple Choice

Which of the following is a key outcome for directors of companies that have obtained full listing?

• A) Listing increases the company's cash flow.
• B) They have far greater freedom to borrow funds.
• C) They have far greater freedom to pay dividends.
• D) Their room for discretion regarding dividend payments is restricted.

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Definitions:

Perpetual Inventory System

An inventory accounting system that records purchases and sales of merchandise immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Periodic Inventory System

A periodic inventory system is an accounting method where inventory levels and cost of goods sold are determined at the end of an accounting period, not after each sale or purchase.

Freight Charges

Costs associated with transporting goods from one location to another, paid by the shipper or the receiver, depending on the terms of sale.

Perpetual Inventory System

An inventory management system where updates are made continuously to the inventory records to reflect sales, purchases, and returns in real-time.