Dividends on Ordinary Shares Are

question 10

Multiple Choice

Dividends on ordinary shares are:

• A) expensed when paid.
• B) expensed when incurred.
• C) expensed at year end.
• D) a reduction of retained profits.

---

Definitions:

Total Dividends

The sum of all dividend payments made to shareholders for a particular period, typically a fiscal year.

Retained Earnings

Earnings accumulated by a company thus far, minus any shareholder dividends or distributions already issued.

Share Price

The current price at which a single share of a company can be bought or sold in the market.

Market Risk

The possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets.