The Dividend Yield Is Computed by Dividing

question 24

Multiple Choice

The dividend yield is computed by dividing:

• A) Annual cash dividends per share by earnings per share.
• B) Earnings per share by cash dividends per share.
• C) Annual cash dividends per share by the market value per share.
• D) Market price per share by cash dividends per share.
• E) Cash dividends per share by retained earnings.

Understand the concept of adjusting entries and why they are necessary in accrual basis accounting.

Identify and classify different types of accounts that require adjustments, such as prepaid expenses, unearned revenues, accrued revenues, and accrued expenses.

Demonstrate the ability to prepare journal entries for common types of adjusting entries, including prepayments, accruals, and depreciation.

Analyze the effects of adjusting entries on the balance sheet and income statement.

---

Definitions:

Baby Boomers

The demographic group born during the post-World War II baby boom, approximately between the years 1946 and 1964.

Environmental Uncertainty

The degree of unpredictability in the external environment that businesses operate in, affecting decision-making processes and strategies.

Rate of Change

A mathematical calculation that identifies the degree to which a quantity increases or decreases over a given period.

Complexity

The state or quality of being intricate or complicated, often requiring sophisticated understanding or solutions.