Which one of the following is a payment of either cash or shares of stock that is paid out of earnings to a firm's shareholders?
A)Interest
B)Distribution
C)Retained earnings
D)Dividend
E)Stock repurchase

Question

Quizplus · Accepted Answer

Dividend is a payment of either cash or shares of stock that is paid out of earnings to a firm's shareholders. Interest is a payment made by a borrower to a lender, usually as compensation for the use of borrowed money. Distribution refers to the process of delivering a product or service to the end-user or end-consumer. Retained earnings are profits that have been kept by the company instead of being paid out as dividends. Stock repurchase refers to a company buying back its own shares from the market.

Which One of the Following Is a Payment of Either