In Which Transaction Cycle Would Information for Paying Dividends Be

question 103

Multiple Choice

In which transaction cycle would information for paying dividends be most likely to pass between internal and external accounting information systems?

• A)the revenue cycle
• B)the expenditure cycle
• C)the human resources / payroll cycle
• D)the financing cycle

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Definitions:

Efficient Frontier

A graph representing the set of portfolios that provides the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Capital Market Line

A line that depicts the risk-reward profile of investable assets, showing the rate of return for varying levels of risk, based on the market risk premium and the risk-free rate.

Minimum-Variance Point

The point on a portfolio's efficient frontier at which the portfolio has the lowest level of volatility or risk for its level of expected return.

Zero Correlation

A statistical measure indicating that two variables do not move in tandem and their relationship is completely random.