Which of the following dividends does not reduce total stockholders' equity?O Liquidating dividends.O Cash dividends.O Stock dividends.O All of these answer choices reduce total stockholders' equity.

The dividend is declared to the shareholders from the retained earnings of the business. The…

Answered: Which of the following dividends does…

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 16MCQ

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Similar questions

Which of the following is the reason that preferred dividends declared during the period are deducted from net income in calculating return on common stockholders’ equity? a. Preferred dividends are not paid from net income. b. Preferred dividends are not a part of stockholders’ equity. c. Preferred dividends are not paid until all common stockholders have received their dividends, so preferred dividends are not relevant in the formula and so must be taken out of the equation. d. Preferred dividends will reduce the amount of income available for distribution to common stockholders.
Which dividends do not reduce stockholders' equity? * Cash dividends Stock dividends O Property dividends O Liquidating dividends
True or False: Dividends declared and paid result in a decrease to the common stock's account balance. Select one: True False
Which of the following will reduce Retained Earnings? a. Declaration of a stock dividendb. Payment of a cash dividendc. Profit for the periodd. None of these
Each of the following decreases total stockholders' equity except a cash dividend. liquidating dividend. stock dividend. All of these decrease total stockholders' equity.
Cash dividends, property dividends, and scrip dividends are examples of dividends that Select one: O a. have no effect on total shareholders' equity but decrease retained earnings and increase contributed capital O b. have no effect on any element of shareholders' equity O c. decrease total shareholders' equity by decreasing retained earnings O d. decrease total shareholders' equity by decreasing contributed capital
True/False. The Dividend Discount Model can be applied to firms that do not pay dividends. Group of answer choices True False
Which of the following statements about stock dividends is not true? Stock dividend is the only type of dividend that does not reduce stockholders’ equity. Stock dividend is the only type of dividend that does not reduce retained earnings. Stock dividend does not affect par value per share. Stock dividend may or may not affect paid-in capital in excess of par.
Ch. 13. True/False. The Dividend Discount Model can be applied to firms that do not pay dividends. Group of answer choices True False
Topic: Payout Policy What are the drawback(s) of distributing dividends instead of retained earnings?
d. (1) What are the two primary ways companies raise common equity? (2) Why is there a cost associated with reinvested earnings? (3) Jana doesnt plan to issue new shares of common stock. Using the CAPM approach, what is Janas estimated cost of equity?
Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.

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Which of the following dividends does not reduce total stockholders' equity? O Liquidating dividends. O Cash dividends. O Stock dividends. O All of these answer choices reduce total stockholders' equity.