Stock Splits and Stock Dividends ________

question 16

Multiple Choice

Stock splits and stock dividends ________.

• A)are just paper financial transactions
• B)divide the firm's existing shares into multiple shares with the same total dollar value
• C)may be used to signal management's intentions to the marketplace
• D)All of the above

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping businesses manage their cash flow effectively.

Cash Disbursements

Cash disbursements are the payments a company makes in cash, including expenses, debt payments, and distributions to shareholders.

Variable Selling And Administrative Expense

Costs that vary with sales volume, such as commissions or shipping charges.

Master Budget

A comprehensive financial planning document that includes all of a company's budgets, combining sales, production, and financial aspects to overview performance.