The Net Income for a Period and the Financial Position

question 79

Multiple Choice

The net income for a period and the financial position at the end of the period are

• A)interrelated.
• B)independent.
• C)relevant.
• D)irrelevant.
• E)autonomous.

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Definitions:

Residual Dividend Policy

A strategy where dividends paid to shareholders are based on earnings left over after all operational and investment costs are covered.

After-Tax Earnings

The net income of a company after all taxes have been deducted from revenues.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing corporation.

Large Stock Dividend

A distribution of a substantial number of shares to a company's shareholders, often used to conserve cash while still rewarding investors.