Which of the Following Dividend Policies Would Most Likely Have

question 39

Multiple Choice

Which of the following dividend policies would most likely have the greatest variability in actual dividends paid?

• A)Sticky dividend policy
• B)A policy of raising dividends by a fixed dollar amount
• C)A policy of raising dividends by a fixed percentage amount
• D)Residual dividend policy

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Definitions:

Salaries and Wages Payable

Represents liabilities for amounts owed to employees for work performed but not yet paid.

Property Plant and Equipment

Long-term tangible assets owned by a company and used in its operations to generate income, including buildings, machinery, and equipment.

Assets

Resources owned or controlled by a business, expected to bring future economic benefits.

Correcting Entry

A journal entry made in an accounting ledger to correct a previously made error.