When an entity declares dividends *Only the outstanding shares are entitled toshare dividendsOnly the issued shares are entitled todividendsBoth the issued and outstanding shares,O including reacquired shares, are entitled todividendsOnly the outstanding ordinary shares areentitled to the dividends

The dividend is the amount of available retained earnings distributed to the shareholders.

Answered: When an entity declares dividends *…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 1MC

See similar textbooks

Similar questions

Share dividends distributable is included in the statement of financial position O As a current liability O As a noncurrent liability O As an adjunct account to share capital As a contra-account to share capital
Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect Bernal Inc.'s total assets, liabilities and shareholders' equity: Shareholders' Assets Liabilities Equity Declaring a cash dividend 2. Paying the cash dividend declared in no. 1 1. 3. Declaring a share dividend Issuing share certificates for the 4. share dividend declared in no. 3 Authorizing and issuing share certificates in a share split 5.
What is advantges and dis advantge of shares repurchacse to the company?
Subscriptions receivable from sale of shares which are not collectible currently shall be presented asRequired to answer. Single choice. a. current assets b. deduction from the related subscribed share capital in the shareholder's equity section c. long-term investment d. other asset.
Dividends declared on redeemable preference shares are recognized O By a debit to retained earnings O By a credit to retained earnings O In a profit or loss In other comprehensive income
1. Gains on sale of treasury shares (cost method) should be credited to •Share premium – treasury •Ordinary share •Gain on sale of treasury •Retained earnings 2. When share without par value and stated value are sold, the proceed should be credited to a. Profit or Loss b. Retained Earnings c. Share Capital d. Share premium
S1 The premium on the shares subscribed shall be recorded at the date of issuance of share certificate. S2 Treasury share are stated at acquisition cost and are treated as deduction from shareholders equity. a. Both statements are true b. Both statements are false c. One statement is true, and the other one is false S1 Treasury shares are not entitled to receive dividend. S2 Treasury shares may either be ordinary or preference. a. Both statements are true b. Both statements are false c. One statement is true, and the other one is false
An entity shall adjust the carrying amount of the dividend payable at the end of each reporting period and at the date of settlement with any changes in the carrying amount of the dividend payable recognized as component of other comprehensive income b. directly in retained earnings c. as gain or loss on property dividend d. as adjustment of share premium
What is the paragraph means: The payment for the redemption may be made:  Out of proceeds of fresh issue of new shares  Out of company’s distributable profits  Out of capital, following procedures prescribed in the new Companies Ordinance (New Co. Ord.)
calculate the dividend payout?
Multiple Choice Theories 1. EPS disclosures are a. Encouraged for all entities b. Required for all entities C. Encouraged for public entities and required for nonpublic entities. d. Required for public entities and encouraged for nonpublic entities. 2. Earnings per share is calculated before accounting for which of the following items? a. Preference share dividend for the period b. Taxation c. Non-controlling interest d. Ordinary share dividend 3. Undeclared dividends are deducted from profit or loss in the earnings per share computation for which type of preference shares? a. Non-cumulative only. b. Cumulative only. C. Neither non-cumulative nor cumulative. d. Both non-cumulative and cumulative 4. The following are considered returns to the preference shareholders and are deducted in calculating profit or loss attributable to ordinary equity holders, except a. Undeclared dividends for the period on cumulative preference b. Loss on settlement of preference shares. C. Amortization of…
Indicate the effects of each of the following transactions on Assets, Liabilities, Share Capital and Retained Earnings. Use + for increase, - for decrease, and 0 for no effect. Share Retained Assets Liabilities Capital Earnings 1. Declaration of cash dividends 2. Payment of cash dividends 3. Declaration of share dividends 4. Issuance of share dividends 5. A share split 6. Cash purchase of treasury stock 7. Sale of treasury stock below cost

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS