Answered: Share dividends, share splits and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

The Declaration on a stock dividend changes to total amount stockholder’s equity of the firm. True or False
The amount of income earned per share of outstanding common stock is known as: Multiple Choice Return on assets per share. Restricted retained earnings per share. Dividends per share. Earnings per share. Continuing operations per share.
Which of the following show the proper effect of a stock split and a stock dividend? Stock Dividend Item Total paid-in capital Item Par value per share Item Total retained earnings Item Total par value (common) Stock Split Increase Stock Split Decrease Stock Split Decrease Stock Split Decrease Increase Stock Dividend No change Stock Dividend Decrease Stock Dividend Increase
What are dividends in arrears? How do they affect the allocation of dividends to preference and ordinary shareholder if: Preference share capital are noncumulative Preference share capital are cumulative
Describe the types of shares held by the company. What can you say about the history of company share issues, retained earnings and payment of dividends? Are they following any specific policies for these? (Please correct answer)
Which of the following statements correctly relate to ordinary shares? i) They represent an ownership interest.ii) Ordinary equity holders are the first to have their claims met in the event of the company going into administration.iii) As dividends are the return to the shareholders, they are paid out of operating profits before tax.iv) Control rights often differ between ordinary and other classes of share.
What us earnings per share? What us its significance to the shareholders? How is it computed if: Only one class of share capital is outstanding Two classes of share capital are outstanding
A company’s assets and shareholders’ equity are most likely to be increased by Share rights exercise Cash dividends Share dividends Share splits
14. What are dividends in arrears? How do they affect the allocation of dividends to preference and ordinary shareholder if: a. Preference share capital are noncumulative b. Preference share capital are cumulative 15. What is the significance of book value per share? How is it computed if a. Only one class of share capital is outstanding? b. Two classes of share capital are outstanding? 16. What is earnings per share? What is its significance to the shareholders? How is it computed if a. Only one class of share capital is outstanding? b. Two classes of share capital are outstanding?
Why are companies required to report the diluted earnings per share figures in addition to the basic earnings per share figures?
Which of the following is true about dividends: Group of answer choices Increasing dividends can impact retained earnings. Dividends must always be paid if the company makes profit. Dividends are split equally between stockholders and bondholders. Dividends paid reduce the net income that is reported on a company's income statement.
None

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Share dividends, share splits and recapitalization do not affect composition of equity total shareholders’ equity number of outstanding shares earnings per share