Financial Managers

question 54

Multiple Choice

Financial managers:

• A) Are reluctant to cut dividends.
• B) Tend to ignore past dividend policies.
• C) Tend to prefer cutting dividends every time quarterly earnings decline.
• D) Prefer cutting dividends over incurring flotation costs.
• E) Place little emphasis on dividend policy consistency.

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Definitions:

Cash Collected

The total amount of cash received by a company during a specific period.

Sales Collection

The process of receiving payment from customers for goods or services sold, improving cash flow and liquidity.

Operating Expenses

Regular expenses associated with the operation of a business, such as rent, utilities, and payroll, not directly tied to production.

Cost of Sales

The immediate expenses related to the manufacturing of products sold by a business, encompassing costs for materials and labor.