Dividend Payout Ratio

Dividend Payout Ratio: Definition The dividend payout ratio shows what portion of available profits is distributed away to equity shareholders in the form of dividends. Hence, the dividend payout ratio also indicates what portion of profits is being reinvested in the business. Formula For Dividend Payout Ratio The dividend payout ratio is the ratio of total dividends to net profit after tax. The f…

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Dividend Coverage Ratio

The dividend coverage ratio indicates the number of times that a dividend is covered by available profit. It is calculated separately for each class of shares. Formula To calculate the dividend coverage ratio for preference shares, use the following formula: For ordinary (common) shares, apply this formula: Example Consider the following information relating to a company: Profit before tax: $480,0…

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Dividend Yield Ratio

The dividend yield ratio shows the percentage return to investors on the market value of the preference or ordinary shares that they own. Like the dividend coverage ratio, this ratio is also calculated separately for each class of shares. Formula For preference shares: For ordinary shares: The dividend is often a major part of all that a shareholder receives from a company for their investment in…

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General Ledger MCQs

Take this quick test on the general ledger to help you prepare for your exams, interviews, or different tests. If you find it difficult to answer any of these multiple choice questions (MCQs), you can read about the general ledger on this website. Time limit: 0 Quiz-summary 0 of 25 questions completed Questions: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Information General…

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Depreciation: Fill In the Blanks

1. Depreciation is a for the business. See answer 2. Depreciation is regarded as a part of the of goods. See answer 3. Depreciation is charged on . See answer 4. Depreciation is not charged in the case of . See answer 5. Depreciation is charged against the of an accounting period. See answer 6. Depreciation does not depend on fluctuations in the value of assets. See answer 7. A in the value of an…

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Introduction to Accounting: Fill in the Blanks

1. are the amounts of cash or other assets taken by the owner from the business for personal use. See answer 2. The excess of current assets over current liabilities is called . See answer 3. is the process that provides information needed as a basis for making business decisions. See answer 4. are assets that are purchased for permanent use in the business. See answer 5. accounts exist even after…

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General Ledger: Fill In the Blanks

1. is the process of transferring journal entries to ledger accounts. See answer 2. The left-hand side of the ledger account is referred to the . See answer 3. The right-hand side of the ledger account is referred to as the . See answer 4. is the abbreviation used for debit. See answer 5. The term credit is usually abbreviated as . See answer 6. is a process that involves finding out the balance o…

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Introduction to Accounting MCQs

This multiple choice question (MCQ) test covers the topic of introduction to accounting. You can use these MCQs to help prepare for your exams, interviews, and professional qualifications. To begin the quiz, simply quick on the “Start Quiz” button below. If you find any questions difficult, consider reading our introduction to accounting in the explanation section of the website. Time limit: 0 Qui…

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General Journal MCQs

Take a quick Multiple Choice Questions (MCQs) test about General Journal. These MCQs can help you to prepare for your exams, interviews and different tests. Just click the “start quiz” button and start General Journal MCQs quiz. If you find difficulty in answering these questions, read ‘General Journal’ chapter thoroughly from explanation section of the website. Time limit: 0 Quiz-summary 0 o…

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General Journal: Fill In the Blanks

1. The is the initial book used to record all transactions. See answer 2. Another name for the general journal is the . See answer 3. The process of recording transactions in the general journal is referred to as . See answer 4. An entry consisting of more than one debit or credit is known as a. See answer 5. The brief description inserted below each journal entry is known as a . See answer 6. Cor…

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