Dividends

question 24

Multiple Choice

Dividends

• A)are the rates of return on mutual funds.
• B)are cash payments that companies make to shareholders.
• C)are the difference between the price and present value per share of a stock.
• D)are the rates of return on a company's capital stock.

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Definitions:

Warranty Expense

The estimated cost related to the future servicing of products sold that is recognized as an expense by a company.

Extended Warranty

An extended warranty is an additional warranty covering the repair and maintenance of items beyond the standard warranty period, usually at an extra cost.

FICA Payroll Tax

Federal taxes in the United States that fund Social Security and Medicare, required to be withheld from employees' paychecks and also matched by employers.

Social Security

A government program that provides monetary assistance to people with inadequate or no income, primarily focused on retirees, disabled individuals, and survivors of deceased workers.