Corporate Dividends Are Less Volatile Than Corporate Earnings

question 98

True/False

Corporate dividends are less volatile than corporate earnings.

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Definitions:

Spending Variance

The difference between the actual spending and the budgeted or planned spending in a given period.

Revenue Variance

The difference between the actual revenue earned and the expected revenue according to budget.

Net Operating Income

The profit derived from a company's regular business operations, excluding deductions of taxes and interest expenses.

Revenue And Spending Variances

The differences between the actual and budgeted amounts of revenue and expenses.