What Is the Percentage of a Firm's Earnings That Is

question 23

Multiple Choice

What is the percentage of a firm's earnings that is distributed to shareholders called?

• A)payout ratio
• B)distribution percentage
• C)retention ratio
• D)dividend portion
• E)outflow ratio

---

Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and profitability over a specified period of time.

Break-Even Point

The break-even point is the level of production or sales at which total revenues equal total costs, and there is no profit or loss.

Dollar Sales

The total monetary amount of products or services sold by a company, typically measured within a specific period.

Contribution Format

An income statement format that highlights variable costs and fixed costs, making it easier to see the contribution margin.