Cash dividends decrease the assels and decrease the retained earnings ofa corporation. OTrue O False
Q: Problem #1 Effects of Transactions Indicate the effects of each of the following transactions on…
A: Indicating the effects -
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Q: the declaration of cash dividends and stock dividends both reduce retained earnings true false
A: Dividend is kind of reward or return which is distributed by the company to their common…
Q: The net effect to a corporation of the declaration and payment of a cash dividend is to: a. increase…
A: Cash dividend means the dividend paid to the company's stockholders in the form of cash. This can be…
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A: Retained Earnings - Retained Earnings is the company's accumulated earnings that is retained by the…
Q: the declaration of cash dividends and stock dividends both reduce retained earnings
A: Solution- Cash Dividends Cash dividends affect two areas on the balance sheet: the cash and…
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Q: Which of the following is true of retained earnings? Retained Earnings is decreased by net income.…
A: Retained earnings are the profits that are attributable to equity shareholders accumulated over a…
Q: taining earnings increase the value EPS than distribution of dividen
A: Retained earning are available income that company can use.
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A: Liquidating dividend are paid by the company in case of insolvency or the company can not pay its…
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A: Cash flows refer to an activity in which there is a movement of money in the business and out of…
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A: Out of the profit earned by the business organization, some of the profit is distributed by them to…
Q: 2. Declaration of cash dividends will ... a. Increase the retained earnings b. Increase the…
A: 2. Declaration of cash dividends are the distribution of earnings deducted from the retained…
Q: The amount of cash a company paid in dividend can be found in the balance sheet. True O False
A: When a company declares dividend , dividend payable account is credited and retained earnings is…
Q: Which one of the following statements is NOT true relating to dividends? 1. Dividends are a portion…
A: 5. 2. Dividends need not be declared solely from the profit of the current year include profits from…
Q: What is the difference between dividends that are declared and dividends that are paid
A: There exist difference between dividend that is declared and paid
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A: Statement of changes in financial position is also called as cash flow statement. It is the…
Q: The effect of the declaration of a cash dividend by the bc Increase Stockholders' equity Decrease a.…
A: Solution: The effect of declaration of cash dividend by board of director is to "Increase…
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A: A Stock Dividend is the payment of dividends in the forms of shares of the company. In cash crunch…
Q: Which statement regarding dividends is false?a. Dividends represent a sharing of corporate profits…
A:
Q: Each of the following decreases total stockholders' equity except a cash dividend. liquidating…
A: Dividend is the part or share of profits that is being paid or distributed to the shareholders of…
Q: The following statements are true regarding dividends. Which of the following is incorrect? a)…
A: Dividend is the amount which is paid to the shareholders for investing their money into the shares.…
Q: r anything other than net income or dividends. olders are guaranteed to receive in company liquidat…
A: Given: The correct option is given as,
Q: Among these transactions, which transaction will have no impact on stockholders' equity? Investment…
A: Hi student Since there are multiple questions, we will answer only first question.
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A: Lets understand the basics. Common stockholders invested in stock in order to gain soeme return on…
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Q: Retained earnings: A. Represent the amount of cash available to pay shareholders. O B. Equal total…
A: Retained earnings defined as the amount that is left over for the business from the total income…
Q: All of the following will decrease retained earnings, except … a. Cash dividends b. Net loss c. Net…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: :Retained earnings .Equal total stockholders' equity less treasury stock at the end of the period A…
A: Retained earning means an amount of net profit or loss which is accumulated over the past few years.…
Q: The ultimate effect of incurring an expense is a reduction in shareholders' equity. The declaration…
A: • Both have the same effect on Total Stockholder’s Equity (of reducing the stockholder’s equity…
Q: Some people think that a company’s retained earnings rep-resent cash reserved for the payment of…
A: Retained earnings: It can be defined as the amount of residual profits that is left with a business…
Q: Explain why stockholders’ equity is increased by revenuesand decreased by expenses.
A: An expense is the cost of operations that a company incurs to generate revenue. There are two main…
Q: Cash dividends paid by a corporation OA. are an expense of the corporation that declared the…
A: Cash dividends is not an expense or loss because it is not charged from the income statement. It is…
Q: Question The final distribution of cash to shareholders after a company has been sold off or…
A: Discontinued operations: It can be defined as the shut down of the company’s core operations.
Q: Which of the following would cause a decrease in stockholders' equity? (A) Purchase of equipment (B)…
A: The shareholder's equity section is a section of the company's balance sheet. It is a section that…
Q: Both cash dividends and stock dividends: a. Reduce total assets. b. Reduce total liabilities. c.…
A: Cash dividend is a cash payment by a company to shareholders in the form of dividend. If company…
Q: Why the dividend does exceeds the balance in retained earnings, the excess referred to as a…
A:
Q: Which of the following is true about dividends: Group of answer choices Increasing dividends can…
A: Dividends are the payments made to the shareholders or investors of the company. When the company…
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A: (a) Dividends: This option is incorrect because payment of dividends reduce the balance of Retained…
Q: Dividend payments reduce all the following balance sheet items except fixed costs retained earnings…
A: Dividend payments reduce all the following balance sheet items retained earnings stockholder's…
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Q: Retained earnings: a. Has a normal debit balance. b. Decreases stockholders’ equity. c. Is equal to…
A: The question is multiple choice question. Required Choose the Correct Option.
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- the declaration of cash dividends and stock dividends both reduce retained earnings true falseWhat do an appropriation of accumulated profits and a declaration of a cash dividend have in common? * a. Both increase the amount of appropriated accumulated profits b. Both result in a decrease in unappropriated accumulated profits c. Both have the same consequences for shareholders d. Both permanently reduce future ability to pay dividendsRetained earnings refers to Group of answer choices Cash and other assets The amount of net income retained in the corporation Common stock that the firm can distribute as dividends None of the other choices are correct.
- Which statement regarding dividends is false?a. Dividends represent a sharing of corporate profits withowners.b. Both stock and cash dividends reduce retained earnings.c. Cash dividends paid to stockholders reduce net income.d. None of the above statements are false.The corporate valuation model cannot be used unless a company pays dividends. a. True b. FalseThe cost of retained earnings is less than the cost of ordinary shares because of *a. the issuance cost.b. agency costs of free cash flow.c. the taxation on earnings.d. the trust fund doctrine.
- 1. What are the company motives for declaring dividends or stock repurchase programs? 2. How would you argue for a significant increase in both dividends and repurchases instead of using the available cash to make investments, i.e. M&A? 3. Would the tax treatment of dividend income versus capital gains income affect the managers’ decisions to disburse cash via dividends versus stock repurchases?6. Fully explain Retained Earnings, Share Capital and Dividends. What arethey? Why are they important to a corporation and an investor? What occurswhen the company experiences negative net income (an accounting loss)?What happens if these losses continue over time?similarities and differences between paid in capital and retained earnings? When does a company declare a cash dividend? Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation?
- Which of the following is not one of the primary considerations management must make before a cash dividend is declared? O The availability of funds to pay the dividend. O The effect of inflation on the company and alternative uses of the cash to be paid for dividends. O The legal permissability of the dividend. O The tax impact on stockholders of the receipt of the dividends.Dividends do not properly measure the value created by a company. True OR False PLEASE explainThe net effect to a corporation of the declaration and payment of a cash dividend is to: a. increase assets and increase stockholders' equity b. increase stockholders' equity and decrease liabilities C. decrease liabilities and decrease stockholders' equity d. decrease assets and decrease stockholders' equity A Moving to the next question prevents changes to this answer.