Which of the Following Is the Accurate Algebraic Expression of the Dividend

question 16

Multiple Choice

Which of the following is the accurate algebraic expression of the dividend signalling model?

• A)Operating cash flow = Investment expenditures - Change in equity + Dividends
• B)Operating cash flow = Financing expenditures - Change in equity + Dividends
• C)Operating cash flow = Financing expenditures - Change in equity - Dividends
• D)Operating cash flow = Investment expenditures - Change in equity - Dividends

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Definitions:

Outstanding Checks

Checks that have been written and recorded in a company's books but have not yet been cleared or cashed by the bank.

Deposit In Transit

Refers to money that has been received and recorded by a business but has not yet been recorded by the bank.

Notes Receivable

Claims against others for money, goods, or services evidenced by promissory notes that are to be paid within a certain period of time.

Bank Reconciliation

is a process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.