Which of the Following Are Internal Reports That Accounting Provides

question 181

Multiple Choice

Which of the following are internal reports that accounting provides to internal users?

• A) Forecasts of cash needs for next year.
• B) Financial comparisons of operating activity alternatives.
• C) Both forecasts of cash needs and financial comparisons are internal reports.
• D) Neither forecasts of cash needs or financial comparisons is an internal report.

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Definitions:

Residual Dividend Policy

A strategy in which a company pays dividends to its shareholders from the residual or leftover equity once all project and operation costs have been met.

Target Capital Structure

The mix of debt, equity, and other securities that a company aims to hold to finance its operations and growth.

Capital Budget

The amount of money allocated for significant long-term investments or projects of a business.

Dividend Payment

A disbursement of a portion of a company's earnings decided by the board of directors to its shareholders.