In the Real World, We Find That Dividends

question 32

Multiple Choice

In the real world, we find that dividends

• A) Usually exhibit greater stability than earnings.
• B) Fluctuate more widely than earnings.
• C) Tend to be a lower percentage of earnings for mature firms.
• D) Are usually changed every year to reflect earnings changes.
• E) Are usually set as a fixed percentage of earnings.

---

Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted or planned amount in a given period.

Planning Budget

A budget prepared for a specific level of activity, used for planning and controlling costs and resources in advance.

Travel Expenses

Costs incurred by an employee or a business when travelling for business purposes, which can include accommodations, meals, transportation, and other expenses.

Spending Variance

The difference between the actual amount spent and the budgeted or expected amount, used in budgeting and financial planning.