For a company with unpredictable investment needs and opportunities, the best way to distribute cash to shareholders would be
A) a residual dividend policy.
B) to repurchase company stock.
C) to issue preferred rather than common stock.
D) to pay dividends on an irregular basis.
Answer: B
You might also like to view...
The fraud triangle requires the auditor to actively consider and assess the risk of fraud for clients and their financial statements
a. True b. False Indicate whether the statement is true or false
By giving affected groups as much time as possible to prepare and respond, what type of strategy is being used to minimize the negative announcement?
A) Matching the approach to the situation B) Considering the unique needs of each group C) Minimizing the element of surprise D) Allowing enough time to plan and manage the response E) Being open and transparent
The accounting equation implies that: Assets + Liabilities = Equity.
Answer the following statement true (T) or false (F)
Which of the following entries would be required to establish a $500 petty cash fund?
A.
| Miscellaneous expense | 500 | |
| Petty Cash | 500 |
B.
| Petty Cash | 500 | |
| Cash | 500 |
C.
| Petty Cash | 500 | |
| Miscellaneous expense | 500 |
D.
| Cash | 500 | |
| Petty Cash | 500 |