Which of the Following Is True

question 103

Multiple Choice

Which of the following is true?

• A) The form content and frequency of variance reports vary considerably among companies.
• B) The form content and frequency of variance reports do not vary among companies.
• C) The form and content of variance reports vary considerably among companies but the frequency is always weekly.
• D) The form and content of variance reports are consistent among companies but the frequency varies.

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Definitions:

Retained Earnings

The portion of net income left over for the company after it has paid out dividends to its shareholders.

Common Stock

Common stock represents ownership shares in a corporation, providing voting rights and entitling the shareholder to a portion of the company’s profits in the form of dividends.

Dividends in Arrears

Dividends on cumulative preferred stock that have not been paid in prior years.

Cumulative

Describes items or amounts that increase over time through successive additions, often used in the context of dividends that are accrued if not paid in a given period.