In the Percent-Of-Sales Method,a Decrease in Dividends

question 14

Multiple Choice

In the percent-of-sales method,a decrease in dividends:

• A) will increase required new funds.
• B) will decrease required new funds.
• C) has no effect on required new funds.
• D) more information is needed.

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Definitions:

Intangibles

Assets that cannot be touched or physically measured, such as patents, copyrights, and trademarks.

Amortized

The process of gradually writing off the initial cost of an asset over a period, thereby reducing its book value on a company's balance sheet.

Expensed

Expensed items refer to costs that are charged against revenue in the current accounting period instead of being capitalized or recorded as an asset.

Routine Accounting

The regular, day-to-day process of recording transactions, maintaining financial records, and preparing financial statements within a business.