How Many of These Will Decrease a Corporation's Retained Earnings

question 27

Multiple Choice

How many of these will decrease a corporation's retained earnings? ∙ a stock split
∙ paying a stock dividend
∙ paying a cash dividend
∙ buying treasury stock

• A)one
• B)two
• C)three
• D)all four

Recognize the duration and capacity of sensory memory.

Comprehend the role of encoding in transforming sensory input into meaningful information.

Explain the concept of storage and how information is retained over time.

Understand retrieval as the process of accessing stored information.

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Definitions:

Dividend Payout Ratio

The dividend payout ratio is the fraction of net income a firm pays to its shareholders in dividends, expressed as a percentage of the company's total net income.

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends.

Profit Margin

A financial metric that measures the percentage of revenue remaining after all expenses have been deducted from sales.

External Financing Need

The requirement for funds from sources outside the business, such as loans or equity financing, to support operations or growth.