Which One of the Following Best Defines a Regular Cash

question 35

Multiple Choice

Which one of the following best defines a regular cash dividend?

• A)Distribution by a firm to its shareholders
• B)Payment from any source by a firm to its owners
• C)One-time payment of cash by a firm to its shareholders
• D)Cash payment by a firm to its owners as part of a firm's normal operations
• E)Distribution of the proceeds from the sale of a portion of a firm's operations

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Definitions:

Going-concern Assumption

An accounting principle that assumes a business will continue to operate indefinitely, rather than being liquidated.

Financial Statements

Standardized documents that provide an overview of a company's financial performance and position, including the balance sheet, income statement, and cash flow statement.

Operating

Pertains to the regular, ongoing activities of a business that are involved in the production or sale of goods and services.