Which One of the Following Correctly Reflects the Effects on the Financial

question 83

Multiple Choice

Which one of the following correctly reflects the effects on the financial statements caused by dividends declared on trading securities owned by a firm?

• A) Current ratio decreases.
• B) Earnings per share increases.
• C) Current ratio is unchanged.
• D) Earnings per share is unchanged.

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Definitions:

Supply Chain Surplus

The total value created by the supply chain, computed as the difference between the value of the final product to the consumer and the costs of the supply chain activities.

Implied Demand Uncertainty

The anticipated variation in customer demand, influencing inventory levels, production planning, and capacity decisions.

Forecast Error

The difference between actual demand and forecasted demand, indicative of the accuracy of demand forecasting efforts.

Marketing and Sales Strategy

The comprehensive plan comprising tactics and methods used by a business to promote, sell, and distribute its products or services.