Knowee
Questions
Features
Study Tools

Group of answer choicesearnings per share minus dividends per share.net income determined using generally accepted accounting principles.dividendscash flows.

Question

Group of answer choices

  • earnings per share minus dividends per share.
  • net income determined using generally accepted accounting principles.
  • dividends
  • cash flows.
🧐 Not the exact question you are looking for?Go ask a question

Solution

It seems you are seeking clarification or an explanation about specific financial terms. Let's analyze the provided answer choices one by one to understand their meanings, as they relate to financial performance and distributions:

  1. Earnings per Share (EPS) minus Dividends per Share: This option suggests a calculation that shows how much of the earnings per share are retained after paying dividends. If a company has an EPS of 1andpaysadividendof1 and pays a dividend of 0.30, the retained earnings per share would be $0.70. This metric can give insights into the portion of earnings reinvested back into the company versus that distributed to shareholders.

  2. Net Income determined using Generally Accepted Accounting Principles (GAAP): GAAP is a set of accounting standards that companies must adhere to when preparing financial statements. Net income is the total profit of a company after all expenses and taxes have been deducted from total revenue. It's a crucial indicator of a company's profitability and is often used by investors to assess financial health.

  3. Dividends: This refers to the portion of a company’s earnings that is distributed to shareholders, typically in cash, but it can also be in the form of additional shares. Dividends provide a direct return on investment to shareholders and are a key component of the total shareholder return along with price appreciation.

  4. Cash Flows: Cash flow represents the net amount of cash being transferred in and out of a business. It’s an important measure because it shows how well a company generates cash to pay its debts and fund its operating expenses. Cash flow can come from operating activities, investing activities, and financing activities, and is crucial for assessing the liquidity of a company.

In summary, these terms represent different aspects of a company’s financial performance. EPS and dividends discuss how earnings are distributed, net income signifies overall profitability, while cash flow indicates liquidity and cash management. A thorough understanding of these components is essential for stakeholders in making informed decisions regarding investment, company operations, and financial health.

This problem has been solved

Similar Questions

Dividends paid: Group of answer choices increase assets. increase expenses. decrease revenues. decrease retained earnings.

How is the payment of dividends to shareholders classified on the statement of cash flows?Group of answer choices

Appropriated retained earnings are generally available for dividends distributionGroup of answer choicesTrueFalse

_________ are the firm's after-tax profits that are distributed to stockholders.Multiple ChoiceDividendsEquity capitalRetained earningsInterest payments

Dividends are predominantly paid in: Group of answer choices cash. property. capital. shares.

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.