Budgetary Items That Can Be Changed Only by Congressional Legislation

question 89

Multiple Choice

Budgetary items that can be changed only by congressional legislation are called

• A)unforgivable.
• B)discretionaries.
• C)uncontrollable.
• D)immutables.
• E)prohibitions.

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Definitions:

Noncumulative Preferred Stock

Preferred shares that do not entitle the holder to claim dividends missed in the past if the company decides not to distribute dividends in a given year.

Stock Split

A corporate action that increases the number of a company's outstanding shares by dividing each share, which in turn reduces the price per share, making the stock more accessible to investors.

Basic Earnings Per Share

A measure of a company's profitability that shows how much of its profits are allocated to each share of common stock.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains unchanged.