What Basis of Accounting Is Used in the Statement of Net

question 14

Multiple Choice

What basis of accounting is used in the Statement of Net Costs prepared by a federal agency?

• A)the budgetary basis
• B)the accrual basis
• C)the cash basis
• D)the modified accrual basis

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Definitions:

Dividend Payout

Dividend Payout refers to the portion of a company's earnings distributed to shareholders as dividends, representing a return on investment.

Dividend Yield

A financial measurement that illustrates the annual amount a company dispenses in dividends compared to its current stock price.

P/E Ratio

The ratio of a company's share price to its earnings per share, indicating the value the market places on its earnings.

Earnings Retention Ratio

The proportion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business, or to pay debt.