When a Division of an Organization Has a High Relative

question 29

Multiple Choice

When a division of an organization has a high relative market share and is in a fast-growing industry,it is called a

• A) Star.
• B) Cash Cow.
• C) Cat.
• D) Question Mark.
• E) Dog.

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Definitions:

Indirect Method

In accounting, a method used to calculate cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.

Cash Dividends

The distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Cash Payments

Transactions involving the transfer of actual cash from one party to another, often for goods or services rendered.