When a small, share capital dividend is declared, Retained Earnings is debited for the a. par value of the share capital b. fair market value of the share capital on the date of record c. fair market value of the share capital on the date of declaration d. fair market value of the share capital on the date of distribution

When a small, share capital dividend is declared, Retained Earnings is debited for the a. par value of the share capital b. fair market value of the share capital on the date of record c. fair market value of the share capital on the date of declaration d. fair market value of the share capital on the date of distribution

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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Question

When a small, share capital dividend is declared, Retained Earnings is debited for the

a. par value of the share capital
b. fair market value of the share capital on the date of record
c. fair market value of the share capital on the date of declaration
d. fair market value of the share capital on the date of distribution

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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