Managerial Accounting Is a Branch of Accounting Which

question 16

Multiple Choice

Managerial accounting is a branch of accounting which:

• A)Provides financial information to creditors and stockholders.
• B)Summarizes financial information.
• C)Assists in predicting future profits.
• D)Assists in making business decisions.

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Definitions:

Covenants

Clauses in a contract or loan agreement that stipulate certain actions that must be taken or avoided by the borrower.

Dividend Payments

Periodic payments made by a company to its shareholders out of its profits or reserves.

Dividend Payout Ratio

A financial metric that shows the percentage of earnings a company distributes to shareholders in the form of dividends.

Yearly Dividend

The total dividend payment a company distributes to its shareholders annually, often expressed as a per share amount.