Answered: Q39 Return that a shareholder gets…

Q39 Return that a shareholder gets from the company, out of its profits, on his shareholdings, is called a. Dividends b. Retained Earnings c. Return on Shareholdings d. Return on Earnings

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 14MCQ

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Question

Q39

Return that a shareholder gets from the company, out of its profits, on his shareholdings, is called

Dividends

Retained Earnings

Return on Shareholdings

Return on Earnings

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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