The Final Distribution of Cash to Shareholders After a Company

question 19

Multiple Choice

The final distribution of cash to shareholders after a company has been sold off or discontinued operations is called a ________ dividend.

• A) complete
• B) liquidating
• C) stock
• D) optimal

---

Definitions:

Cash Dividends

Payments made by a corporation to its shareholders, usually in the form of cash, out of its profits or reserves.

Payable

Refers to an amount of money that a company owes to its creditors or suppliers, to be paid at a later date.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered on credit.

Indirect Method

Indirect Method is a way of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for non-cash transactions and changes in working capital.