The cash remaining after the company has met its operating expenses, payments to creditors, and tax is called:
A) earnings per share.
B) capital contributed in excess of par.
C) residual cash.
D) dividends.

Question

Quizplus · Accepted Answer

Residual cash refers to the cash remaining after a company has paid all of its operating expenses, debts, and taxes. This cash can be used for various purposes, such as investments, dividends, and other capital expenditures. Earnings per share relate to the net income of the company divided by the number of outstanding shares, while capital contributed in excess of par refers to the amount of money raised by a company through the issuance of common stock above its par value. Dividends are a portion of a company's profits that are distributed to its shareholders.

The Cash Remaining After the Company Has Met Its Operating