If Net Cash from Operating Activities Is £350,000 and the Dividend

question 15

Multiple Choice

If net cash from operating activities is £350,000 and the dividend paid is £140,000,what is the dividend cover?

• A) 0.4 times
• B) 2.5 times
• C) 1.6 times
• D) 0.6 times

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Definitions:

Expanded Accounting Equation

An extension of the basic accounting equation that includes components such as owner's equity, retained earnings, and dividends.

Beginning Balances

The balances of accounts at the start of a new accounting period, carried over from the end of the prior period.

Transactions

Financial events that affect the financial position of a company, measurable in terms of changes in assets, liabilities, and equity.

Statement Of Owner's Equity

A financial statement that shows the changes in the ownership interest of a company over a period of time.