If You Want to Receive the Recently Declared Dividend on ABG

question 16

Multiple Choice

If you want to receive the recently declared dividend on ABG stock,you must purchase your shares ________ or more business day(s) prior to the date of record.

• A)four
• B)one
• C)two
• D)three
• E)five

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Definitions:

Sum-Of-The-Years-Digits

An accelerated method of depreciation which calculates annual depreciation by multiplying an asset's cost by a fraction that decreases year by year.

Scrap Value

The estimated residual value of an asset after it has reached the end of its useful life.

Transmitter

A device that sends signals, such as radio waves, from one location to another, typically used in communication systems.

Double-Declining-Balance

An accelerated depreciation method that doubles the rate at which an asset's book value is reduced compared to straight-line depreciation.