Dividends Are Best Defined As

question 87

Multiple Choice

Dividends are best defined as:

• A)cash payments to shareholders.
• B)cash payments to either bondholders or shareholders.
• C)cash or stock payments to shareholders.
• D)cash or stock payments to either bondholders or shareholders.
• E)distributions of stock to current shareholders.

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Definitions:

Adjusted Trial Balance

A trial balance that reflects account balances after adjusting entries have been made for accruals, deferrals, and other financial events.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Current Liabilities

Obligations or debts that a company is expected to pay within one year or within its operating cycle.

Current Assets

Items that are projected to be turned into cash, disposed of, or used up within twelve months or the usual business operational cycle.