A Document Indicating a Reduction in the Amount Owed to a Vendor

question 119

Multiple Choice

A document indicating a reduction in the amount owed to a vendor because of returned goods is

• A) a debit memo.
• B) a credit memo.
• C) a receiving report.
• D) a contractual adjustment form.

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Definitions:

Expected ROE

The anticipated return on equity, calculated based on expected future earnings divided by shareholders' equity.

Expected ROE

The projected return on equity, which measures a company's efficiency at generating profits from every unit of shareholder's equity.

Dividend Growth Rate

The annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time.

Plowback Ratio

The proportion of earnings retained by a company after dividends have been paid out, often used to fund growth projects.