Who Has a Right to Receive Dividends

question 25

Multiple Choice

Who has a right to receive dividends?

• A) both preferred and common shareholders at all times
• B) both preferred and common shareholders,so long as the corporation has adequate profit
• C) preferred shareholders at all times when the corporation has adequate profit,and common shareholders whenever dividends have been declared
• D) both preferred and common shareholders,but only when dividends have been declared
• E) neither preferred nor common shareholders ever have a right to the payment of dividends,even after their declaration

---

Definitions:

Predetermined Overhead Rate

An estimate used to allocate overhead costs to products or job orders, calculated before the costs are incurred.

Finished Goods

Items that are finished with the production phase but are still awaiting sale or delivery to consumers.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor costs.

Work in Process Inventory

Goods that are partially completed in manufacturing but not yet ready for sale, reflecting a stage between raw materials and finished goods.