The Only Way an Investor Will Get a Return on Shares

question 104

True/False

The only way an investor will get a return on shares while they own the shares is for the corporation to distribute a dividend.

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Definitions:

Net Income

The amount of money left over after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.

End-of-Period Spreadsheets

Tools used in accounting to compile financial information at the end of an accounting period, aiding in the preparation of financial statements.

Current Ratio

A financial metric indicating a firm's capability to settle short-term debts due within a year, derived by dividing current assets by current liabilities.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer.