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…

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. 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.

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. 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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

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

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 9MC: Cash dividends declared out of current earnings were distributed to an investor. How will the...

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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
Why is the term liquidating dividend used to describe cash dividends debited against paid-in capital accounts?
If a corporation decides to pay out a cash dividend, when does that happen?
Exactly when does a corporation decide to pay out a cash dividend?
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?
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
.
The balance of the income summary account of a corporation is transferred to which of the following accounts? Capital Stock Cash Premium on Sale of Capital Stock Retained Earnings.
Distinguish among: cash dividends, property dividends,liquidating dividends, and stock dividends.
Which of the following statements is true regarding the payment of dividends to preferred shareholders? O a. Payments to debtholders are paid before dividends are paid to preferred shareholders. O b. Dividends to preferred shareholders are a tax-deductible expense to the issuing company. O c. Dividends to preferred shareholders are paid before payments are made to debtholders. O d. Dividends to preferred shareholders are paid after dividends are paid to common shareholders.
1. What is the accounting for treasury share transactions? a. On repurchase or re-issuance of previously purchased own shares, no gain or loss is recognized. b. Treasury shares are accounted for as financial assets. c. On re-issuance of treasury shares, a gain or loss is recognized equal to the difference between the previous repurchase price and the re-issuance price. d. On repurchase of treasury shares, a gain or loss is recognized equal to the difference between the amount at which the shares were issued and the repurchase price for the shares. . 2. If a no-par value share is issued... a. The value of each share is automatically ₱5. b. The corporation is automatically in violation of its state charter. c. There is no legal capital. d. The entire proceeds is considered as legal capital. . 3 Which of the following statements relating to bonds is incorrect? a. None of the choices b. A bond’s face value is the amount the issuer must pay…
All of the following distributions to stockholders are considered asset or capital distributions, except Cash dividends Property dividends Liquidating dividends Stock splits