Cash Flow to Shareholders Is Defined As

question 32

Multiple Choice

Cash flow to shareholders is defined as:

• A)cash flow from assets plus cash flow to creditors
• B)operating cash flow minus cash flow to creditors
• C)dividends paid plus the change in retained earnings
• D)dividends paid minus net new equity raised
• E)net income minus the addition to retained earnings

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Definitions:

Allocation Base B

Refers to a criterion or standard used to distribute costs among different cost objects, often used in activity-based costing.

Step-down Method

An accounting approach for distributing overhead expenses across different departments or products.

Personnel Department

The division within an organization tasked with managing employee-related processes including hiring, training, and benefits administration, commonly known as the human resources (HR) department.

Information Technology

The employment of computers, storage systems, networks, and various physical assets, infrastructure, and procedures to generate, process, safeguard, store, and share every type of electronic information.