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SCMA-D Braindumps VCE
  • Exam Code: SCMA-D
  • Exam Name: Dermatology

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NEW QUESTION: 1
All else being equal, an entity with a higher dividend-payout ratio will have a <List A> debt-to-assets ratio and a <List B} current ratio.

A. Option A
B. Option B
C. Option C
D. Option D
Answer: B
Explanation:
An entity with a higher dividend-payout ratio is distributing more of its earnings as dividends to ordinary shareholders. It will have less cash and less total assets than a comparable entity with a lower payout ratio. The debt-to-assets ratio will be higher because total assets are lower, and the current ratio will be lower because cash is lower.
An entity's financial statements for the current year are presented below:



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