You Now Own 84 Shares of XYZ Stock, Which Is

question 7

Multiple Choice

You now own 84 shares of XYZ stock, which is selling for $40 each, 4 of which you just received from the XYZ corporation.XYZ has declared a:

• A)Stock dividend of 5%
• B)Cash dividend of $4
• C)Stock dividend of 4%
• D)Cash dividend of $160

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Definitions:

Cash Budgeting

The process of estimating future cash inflows and outflows to determine the cash position and to plan for any surplus or deficit.

Financial Statements

Written records that convey the business activities and the financial performance of a company.

GAAP

Generally Accepted Accounting Principles, which are a set of rules and standards used in the United States for financial reporting.

Accounts Payable

Liabilities of a business that are owed to creditors for goods and services purchased on credit.