Question
A company with stable earnings announces a sudden, large
cut in dividend despite strong retained earnings and no capital expenditure needs. Which interpretation is most consistent with dividend signalling theory and market practice?Solution
Dividend signalling suggests managers use dividend changes to signal private information about future earnings. An unexpected cut, especially with strong earnings and no investment need, is often interpreted as a negative signal.
The concept that requires a business to use the same accounting methods and policies from one period to the next is called:
The liability of a sole proprietor is:
A provision for onerous contract is:
According to GST Laws, from 1 August 2023, the e-invoicing is mandatory for businesses with annual aggregate turnover of over _______ in any previous fi...
The Miller-Orr Model is used to manage:
What is the taxable event under GST?
A company has an actual sales of ₹25 crore vs. a budget of ₹30 crore. Costs were below budget by ₹2 crore. What does this imply?
According to section 11 of the Indian Contract Act agreement with a minor is:
Which Ind AS deals with Revenue from Contracts with Customers?
If an employee does not make an intimation to their employer about their selection regarding the tax regime, the employer will:
