Dividends are the part of profit distributed to its shareholders by a corporation, board of directors takes the decision regarding the declaration of dividends, it is in the discretion of directors whether to pay dividends or not. The reason for using term liquidating dividends for cash dividends against paid in capital.

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Answer 1

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Chapter 11, Problem 9DQ

To determine

Introduction: Dividends are the part of profit distributed to its shareholders by a corporation, board of directors takes the decision regarding the declaration of dividends, it is in the discretion of directors whether to pay dividends or not.

The reason for using term liquidating dividends for cash dividends against paid in capital.

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Why is the term liquidating dividend used to describe cash dividends debited against paid-in capital accounts?

a. Where should a declared but unpaid cash dividend be reported on the balance sheet?b. Where should a declared but unissued stock dividend be reported on the balance sheet?

Is Cash Dividends qualify as Revenue?

Answer 2

Question

Chapter 11, Problem 9DQ

To determine

Introduction: Dividends are the part of profit distributed to its shareholders by a corporation, board of directors takes the decision regarding the declaration of dividends, it is in the discretion of directors whether to pay dividends or not.

The reason for using term liquidating dividends for cash dividends against paid in capital.

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Answer 3

Question

Chapter 11, Problem 9DQ

To determine

Introduction: Dividends are the part of profit distributed to its shareholders by a corporation, board of directors takes the decision regarding the declaration of dividends, it is in the discretion of directors whether to pay dividends or not.

The reason for using term liquidating dividends for cash dividends against paid in capital.

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Answer 4

Question

Chapter 11, Problem 9DQ

To determine

Introduction: Dividends are the part of profit distributed to its shareholders by a corporation, board of directors takes the decision regarding the declaration of dividends, it is in the discretion of directors whether to pay dividends or not.

The reason for using term liquidating dividends for cash dividends against paid in capital.

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Answer 5

Chapter 11, Problem 9DQ

To determine

Introduction: Dividends are the part of profit distributed to its shareholders by a corporation, board of directors takes the decision regarding the declaration of dividends, it is in the discretion of directors whether to pay dividends or not.

The reason for using term liquidating dividends for cash dividends against paid in capital.

Answer 6

Chapter 11, Problem 9DQ

To determine

Introduction: Dividends are the part of profit distributed to its shareholders by a corporation, board of directors takes the decision regarding the declaration of dividends, it is in the discretion of directors whether to pay dividends or not.

The reason for using term liquidating dividends for cash dividends against paid in capital.

Answer 7

Chapter 11, Problem 9DQ

To determine

Introduction: Dividends are the part of profit distributed to its shareholders by a corporation, board of directors takes the decision regarding the declaration of dividends, it is in the discretion of directors whether to pay dividends or not.

The reason for using term liquidating dividends for cash dividends against paid in capital.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 11 - Prob. 1MCQ Ch. 11 - Prob. 2MCQ Ch. 11 - Prob. 3MCQ Ch. 11 - Prob. 4MCQ Ch. 11 - Prob. 5MCQ Ch. 11 - Prob. 1DQ Ch. 11 - Prob. 2DQ Ch. 11 - Prob. 3DQ Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ

Solution Summary: The author explains the term liquidating dividends, which is used because it returns a part of the investment back to stockholders.

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