Dividends

question 64

Multiple Choice

Dividends:

• A)are expenses.
• B)always affect net income.
• C)are distributions to stockholders of assets (usually cash)generated by net income.
• D)are distributions to stockholders of assets (usually cash)generated by a favorable balance in retained earnings.

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Definitions:

Debt To Total Assets Ratio

A financial metric indicating what proportion of a company's total assets are financed through debt, used to assess financial leverage.

Creditor's Point Of View

A perspective focusing on the safety, return, and timeliness of payments related to the amounts lent or credits extended.

Obligations

Liabilities or commitments a company or individual has to pay back money or perform specific actions in the future.

Solvency Ratio

The solvency ratio is a financial metric used to evaluate a company's ability to meet its long-term debt obligations, indicating financial health.