Which of the Following Is the Best Definition of Dividend

question 369

Multiple Choice

Which of the following is the best definition of dividend capture?

• A) The difference between book cash and bank cash, representing the net effect of cheques in the process of clearing.
• B) A strategy in which an investor purchases securities to own them on the day of record and then quickly sells them; designed to attain dividends but avoid the risk of a lengthy hold.
• C) Bank makes proceeds of cheques deposited available the same day before cheques clear.
• D) The need to hold cash as a safety margin to act as a financial reserve.
• E) Special post office boxes set up to intercept and speed up accounts receivable payments.

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Definitions:

Work in Process

Inventory that includes goods in manufacturing that are not yet completed; represents a stage between raw materials and finished goods.

Raw Materials

Basic materials used in the manufacturing process that are not yet processed or transformed.

Accounts Payable

The amounts a company owes to suppliers or creditors for products or services bought on credit.

Job-Order Costing System

An accounting method used to track the costs associated with producing specific jobs or batches of products.