Which of the Following Statements Is FALSE

question 66

Multiple Choice

Which of the following statements is FALSE?

• A)From an accounting perspective,dividends generally reduce the firm's current (or accumulated)retained earnings.
• B)The way a firm chooses between paying dividends and retaining earnings is referred to as its payout policy.
• C)Most companies that pay dividends pay them semiannually.
• D)Occasionally,a firm may pay a one-time,special dividend that is usually much larger than a regular dividend.

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Definitions:

Unit Product Cost

The total expense incurred to produce and deliver one unit of a product, including both direct and indirect costs.

Variable Costing

An accounting technique that entails including only the variable costs of production, like direct materials, labor directly involved in manufacturing, and variable factory overhead, into the pricing of products.

Unit Product Cost

The total cost (fixed and variable) incurred to produce, store, and sell one unit of a product.

Net Operating Income

A financial metric that shows how much profit a company generates from its core business operations, excluding expenses from interest and taxes.