The Statement of Cash Flows Reports Each of the Following

question 193

Multiple Choice

The statement of cash flows reports each of the following except

• A) cash receipts from operating activities.
• B) cash payments from investing activities.
• C) the net change in cash.
• D) cash sales.

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Definitions:

Residual Dividend Policy

A strategy whereby companies pay dividends from the residual or leftover equity only after all project capital needs are met.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, expressed as a percentage of the company's total net income.

Capital Budgeting

The process of evaluating and selecting long-term investments that are consistent with the firm's goal of wealth maximization.

Record Date

The date set by a company on which you must be on the company's books as a shareholder to receive a declared dividend or participate in corporate actions.