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

See similar textbooks

Similar questions

h
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.
answer true or false. please write out complete word TRUE OR FALSE Common stock carries voting privileges while preferred stock gives up this right to receive a dividend preference________________________. The board of directors who are responsible for dividends creates the liability for dividends on the declaration date ___________________________. The par value is the minimum arbitrary value set for a company’s shares ___________________. Deferred revenues are liabilities which arise when a company receives cash prior to the performance of a service____________________. A negative characteristic of corporations is double taxation ________________________. Copyrights and patents are intangible assets which require annual amortization___________________.
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.
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. *
please solve this question.
1. The prescribed accounting treatment for stock dividends implicitly assumes that shareholders are fooled by "small" stock dividends and benefit by the market value of their additional shares. Explain this statement. Is it logical? 2. You are in your second year as an auditor with Dantly and Regis, a regional CPA firm. One of the firm’s long-time clients is Mayberry-Cleaver Industries, a national company involved in the manufacturing, marketing, and sales of hydraulic devices used in specialized manufacturing applications. Early in this year’s audit, you discover that Mayberry-Cleaver has changed its method of determining inventory from LIFO to FIFO. Your client’s expectations is that FIFO is consistent with the method used by some other companies in the industry. Upon further investigation, you discover an executive stock option plan whose term calls for a significant increase in the shares available to executives if net income this year exceeds $44 million. Some quick calculations…