In the Context of Inventories, Which of the Following Is

question 69

Multiple Choice

In the context of inventories, which of the following is a similarity between a manufacturing firm and a retail firm?

• A) Both hold inventories of finished goods.
• B) Both typically hold inventories of work in process.
• C) Both typically hold inventories of raw materials.
• D) Both hold small inventories, thereby reducing the risk of stock-outs.

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Definitions:

Date of Record

The specific date on which a company determines its shareholders' eligibility to receive dividends or share distributions.

Resolution to Pay

A formal decision made by a company's board of directors to distribute funds, often as dividends, to shareholders.

Dividend Payment

A payout of part of a firm's profits, determined by its board of directors, and given to its stockholders.

Ex-Dividend Date

Date two business days before the date of record, establishing those individuals entitled to a dividend.