Which of the Following Would Be a Reason for a Company

question 23

Multiple Choice

Which of the following would be a reason for a company to appropriate a portion of retained earnings?

• A)To limit the amount of retained earnings available for dividends, in order to retain sufficient funds for growth
• B)To help the company control levels of operating expenses
• C)To ensure that the business does not take on too much debt
• D)To increase the amount of earnings available for dividends

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Definitions:

Actual Results

The real outcomes achieved by a business, such as actual sales, expenses, and profit, as opposed to forecasts or budgeted figures.

Tenant-Days

A metric in property management, indicating the total number of days that units were occupied by tenants within a specific period.

Wages and Salaries

Payments to employees for their work or services, typically on an hourly (wages) or annual (salaries) basis.

Planning Budget

A forward-looking budget that outlines the financial plans, objectives, and resources over a specific timeframe, often used for guiding the operations and evaluating performance.