List and Describe the Different Types of Programs That Are

question 27

Essay

List and describe the different types of programs that are executed on a computer.

Recognize the accounting treatments for different types of dividends.

Calculate the dividends distributed to preferred and common shareholders under various scenarios.

Understand the conditions under which companies declare different types of dividends.

Evaluate the impact of dividends on company liquidity and retained earnings.

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Definitions:

Cost-Volume-Profit Graph

A visual representation showing the relationship between a company's costs, sales volume, and profits at various levels of activity.

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in no net loss or gain.

Operating Leverage

The degree to which a company uses fixed operating costs, with all else being equal, the higher the operating leverage, the more sensitive net operating income is to a given percentage change in sales.

Cost-Volume-Profit Graph

A graphical representation that shows the relationship between the total cost, total revenue, and level of output or volume, to analyze the profitability at different levels of operation.