When Some Dollar Amount Is Automatically Corrected for Inflation by Law

question 151

True/False

When some dollar amount is automatically corrected for inflation by law or contract, the amount is said to be indexed for inflation.

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Definitions:

Date of Payment

The date of payment refers to the specific day a payment was made or is scheduled to be made for transactions, bills, or invoices.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders but retained by the company to reinvest in its core business or to pay debt.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.