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Which of the Following Statements Is False

question 100

Multiple Choice

Which of the following statements is false?


Definitions:

Retained Earnings

Profits that a company chooses not to distribute as dividends but instead reinvests into the business or uses to pay off debt, reflecting the accumulated surplus from business operations.

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, usually expressed as a percentage.

Profit Margin

A measure of profitability calculated as net income divided by revenue.

Equity Financing

The method of raising capital through the sale of shares in a company, giving investors ownership interests.

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