What 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 dividends
What 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 dividends
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter12: Valuation: Cash-flow Based Approaches
Section: Chapter Questions
Problem 3QE
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What 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 dividends
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