Although some laws concerning cash dividends vary by state, which provision is followed by all states?Stock dividends may be paid from the balance in common stock.O Cash dividends may be paid from the balance in common stock.Cash dividends may be paid from paid-in capital balances in excess of par or stated value.Cash dividends may be paid out of retained earnings.

Dividends are payments made by a corporation to its shareholders. They represent a distribution of a…

Answered: Although some laws concerning cash…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 14MCQ

See similar textbooks

Similar questions

Which of the following need not be disclosed in a schedule accompanying the statement of cash flows as an investing and financing activity not affecting cash? a. acquisition of fixed assets in exchange for capital stock b. dividend distributed in capital stock of the company (stock dividend) c. retirement of a bond issue through the issuance of another bond issue d. conversion of convertible debt to capital stock
The date on which a cash dividend becomes a binding legal obligation is on the * O declaration date. O date of record. O payment date. last day of the fiscal year-end.
U.S. GAAP designates cash outflows for interest payments and cash inflows from interest and dividends receivedas operating cash flows. Dividends paid to shareholders are classified as financing cash flows. How are thesecash flows reported under IFRS?
Matching Type. Choose the correct answer in the box provided. It entitles an employee to receive cash which is equal to the excess of market value of the entity's share over a pre-determined price for a stated number of shares. * These are actually deferred cash dividends. * It is a kind of appropriation for retained earnings supported by the trust fund doctrine. *
The total amount of cash and other assets received by a corporation from the stockholders in exchange for the shares is ________. A. always equal to par value B. referred to as retained earnings C. always below its stated value D. referred to as paid-in capital
treasury stock allows for the exercising of voting rights and collection of declared cash dividends
Which of the following is the appropriate general journal entry to record the declaration of cash dividends? Please provide the ISelect] vand [ Select ] accounts. Select Cash Dividends Accounts Payable Cash Cash Dividends Payable
When an investor uses the equity method to account for investments in common stock, the investor’s share of cash dividends from the investee should be recorded as A deduction from the investor’s share of the investee’s profits. Dividend income. A deduction from the stockholders’ equity account, Dividends to Stockholders. A deduction from the investment account. (AICPA adapted)
Which of the following statements related to dividends is incorrect? O Dividends must be paid in the period declared. O Before declaring a dividend, management must consider availability of funds to pay the dividend. O Distributions to owners must be in compliance with the state laws. O Dividends must be declared by the Board of Directors.
Which of the following is most likely true regarding payment of dividends? a. Dividends may be paid from legal capital b. Retained earnings are available for dividends unless restricted by contract or by statute c. Unrealized capital is available for any type of dividend d. Capital from donated assets is available for dividends
Why the bank or trust company serving as stock transfer is usually appointed to distribute the dividend, since it maintains the detailed records of shareholders?
How are cash inflows from dividends and interest and cash outflows for dividends andinterest classified in AF’s cash flow statements? Is this classification the same as ordifferent from cash flow statements prepared in accordance with U.S. GAAP?

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

SEE MORE TEXTBOOKS