(a)
Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends.
Stock Dividends: It refers to the payment of the dividend to its shareholders by the corporation in the form of shares rather than cash is referred as stock dividend.
To state: the stakeholders in this situation.
(b)
To explain: whether there is anything unethical about president’s Mr. B’s intentions or actions.
(c)
To explain: the effect of stock dividends on the corporation’s stockholders’ equity accounts.
To explain: which dividend is to be received by a stockholder.
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Bundle: Financial Accounting: Tools for Business Decision Making 8e Binder Ready Version + WileyPLUS Registration Code
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning