Which of the following are the two financial requirements that the board of directors must consider when declaring a cash dividend? i) the retained earnings account has a positive balance greater than the dividend. i) the cash account has a balance greater than the amount of the dividend declared. ii) the company's earnings have shown growth for the last two quarters. iv) the shareholders have approved the declaration of the cash dividend. Multiple Choice i and ill i and i ii and i ii and iv

Which of the following are the two financial requirements that the board of directors must consider when declaring a cash dividend? i) the retained earnings account has a positive balance greater than the dividend. i) the cash account has a balance greater than the amount of the dividend declared. ii) the company's earnings have shown growth for the last two quarters. iv) the shareholders have approved the declaration of the cash dividend. Multiple Choice i and ill i and i ii and i ii and iv

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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If a corporation fails to declare a dividend on cumulative preferred stock in a given year, the dividends in arrears accumulate from period to period. the dividends in arrears are recorded as liabilities. the common shareholders may still receive dividends in the current year. all of these options apply.
Which of the following statements is true?a. The outstanding number of shares is the maximum number of shares that can beissued by a corporation.b. The shares that are in the hands of the stockholders are said to be outstanding.c. It is very unlikely that corporations will have more than one class of stock outstanding.d. Preferred stock is stock that has been retired.
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The annual reports of public corporations normally include a section on Management Discussion and Analysis (MD&A). Please examine the MD&A section of your selected company and let us know about any comments included regarding management's assessment of the company's liquidity and the availability of capital to the company. Also, please select one of the profitability ratios and calculate or find it for your company. Please let us know what this profitability ratio indicates about the financial health of your company.
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In this module, we learned about a corporation's dividends, retained earnings, and income reporting. The purpose of this discussion is to explore the underlying concepts in more detail so that all participants can increase their understanding. For your thread portion, think about a concept that you are either having difficulty understanding, would like to learn more about, or that you already understand. Topic areas could include how to account for cash dividends, stock dividends, and stock splits, the reporting of stockholders' equity and its related analysis, or the form and content of corporation income statements. Next, enter the discussion, create a thread, and post either a question or a short description of the concept that you selected. You can reference any part of the chapter, a video link, or any other content which will benefit your fellow classmate, or that they can use to help you increase your understanding.
Which of the following statements related to dividends is incorrect? O Dividends must be paid in the period declared. O Before declaring a dividend, management must consider availability of funds to pay the dividend. O Distributions to owners must be in compliance with the state laws. O Dividends must be declared by the Board of Directors.
Part 1 Which are rights of common stockholders? Check all that apply: The right to a share of dividends paid The right to vote for members of the board of directors The right to vote on major decisions at the annual general meeting The right to receive regular dividends Submit
Identify the term being referred to: A theory that states that shareholders will encourage the board of directors to declare as much dividends as possible so that only the minimum amount of cash is available to the entity. This is to prevent excessive spending by managers. *
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Discuss the impact of issuance of share dividends to the existing shareholders. (Кпowledge)