FIN.ACCT-TOOLS F/DECI.MAKERS-TEXT+WILEY+
FIN.ACCT-TOOLS F/DECI.MAKERS-TEXT+WILEY+
9th Edition
ISBN: 9781119598312
Author: Kimmel
Publisher: WILEY C
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Chapter 11, Problem 11.9EYCT

(a)

To determine

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 determine

To explain: whether there is anything unethical about president’s Mr. B’s intentions or actions.

(c)

To determine

To explain: the effect of stock dividends on the corporation’s stockholders’ equity accounts.

To determine

To explain: which dividend is to be received by a stockholder.

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