Dividends Represent

question 65

Multiple Choice

Dividends represent:

• A)Resources of the company.
• B)Cash payments to stockholders.
• C)Amounts owed to creditors.

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Definitions:

Variable Costs

Expenditures that vary in a direct manner with the volume of output or sales.

Straight-Line Depreciation

A mechanism for spreading the expenditure of a tangible asset over its longevity in equal annual fractions.

Interest Payments

The regular payments made by a borrower to a lender as compensation for the use of borrowed money, usually calculated as a percentage of the outstanding principal.

CCA Class

In the context of Canadian taxation, refers to the categorization of depreciable property for the purpose of calculating capital cost allowance (tax deductions for depreciation).