List and Define the Four Standards for Evaluating Accounting That

question 14

Essay

List and define the four standards for evaluating accounting that are at the heart of ASOBAT.

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Definitions:

Payout Ratio

A financial metric that measures the proportion of earnings a company pays out to its shareholders in the form of dividends.

Cash Dividends

Distributions of a corporation's earnings to shareholders in the form of cash, typically issued on a regular basis.

Retained Earnings

The cumulative amount of net income kept in a company after dividends are paid, used for reinvesting in the business or paying down debt.

Stock Split

A corporate action that increases the number of a company's outstanding shares by dividing each share, which typically reduces the price of individual shares without changing the total market value.