Which among the following statement is correct: Interim dividend is usually approved by the shareholders in annual general meeting. Dividends on ordinary share capital represents distribution of the profits attributable to owners of the business. Interim dividends are dividends are not frequently distributed to the equity shareholdrs. The interim dividend is typically larger than any final dividends.

Which among the following statement is correct: Interim dividend is usually approved by the shareholders in annual general meeting. Dividends on ordinary share capital represents distribution of the profits attributable to owners of the business. Interim dividends are dividends are not frequently distributed to the equity shareholdrs. The interim dividend is typically larger than any final dividends.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 42P

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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.
Which of the following statements regarding dividends in arrears is false? a. Total dividends in arrears is one year dividend requirement on cumulative preference share capital multiplied by the number of years in arrears.b. Dividends in arrears may arise on both preference and ordinary share capital in any year the dividends are not paid.c. Dividends in arrears are not a liability to a corporation until they are declared.d. Dividends in arrears must be reported in the footnotes to the financial statements.
Which of the following affects the total Shareholders’ Equity? Appropriation of retained earnings Declaration of a scrip dividend Declaration of share split Retirement of treasury shares
Calculate the total payout?
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Identify all of the following statements that are correct with regards to dividends and stock splits: a. The record date is the date that will determine who is eligible to receive a dividend. b. When a stock split occurs, a share’s market value will decline and, initially, each shareholder’s wealth will decline. c. Companies are not required to declare and issue dividends to common shareholders, but companies are required to declare and issue a dividend to preferred shareholders. d. If a person holds 25% of the common shares in a company, they will receive 25% of the total dividends paid on common shares. e. Both cash dividends and stock dividends decrease shareholders’ equity. f. The advantage of a stock split is that it may increase the marketability of the shares by lowering the share price. g. The Canada Business Corporations Act requires that stock dividends be recorded at book value. h. When a stock dividend is declared, additional shares will be issued to each shareholder based…
Which of the following statements would best describe the numerator of the diluted earnings per share? Profit attributable to shareholders of the parent, adjusted for changes in profit or loss due to the actual conversion of anti- dilutive potential ordinary shares to ordinary shares. Profit attributable to shareholders of the parent, adjusted for changes in profit or loss due to the assumed conversion of anti-dilutive potential ordinary shares to ordinary shares. Profit attributable to shareholders of the parent, adjusted for changes in profit or loss due to the actual conversion of dilutive potential ordinary shares to ordinary shares. Profit attributable to shareholders of the parent. Profit attributable to shareholders of the parent, adjusted for changes in profit or loss due to the assumed conversion of dilutive potential ordinary shares to ordinary shares.
1. The issuer of an ordinary share dividend to ordinary shareholders should transfer from retained earnings to contributed capital an amount equal to the a. fair value of the shares issued. b. par or stated value of the shares issued. c. book value of the shares issued. d. minimum legal requirements. 2. Statement 1: Treasury shares are a company’s own shares that have been reacquired and retired. Statement 2: The cost method records all transactions in treasury shares at their cost and reports the treasury shares as a deduction from ordinary shares. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect. 3. The declaration and issuance of a share dividend a. increases ordinary shares outstanding and increases total equity. b. increases retained earnings and increases total equity. c. decreases retained earnings but does not change total equity. d. may increase share premium but does not change total…
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Which of the following affects the total Shareholders’ Equity? a. Declaration of a scrip dividend b. Declaration of share split c. Appropriation of retained earnings d. Retirement of treasury shares
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calculate the dividend payout?