Dividends: Dividend is the reward or return that a company gives to its shareholders on their investment. Dividends can be cash or otherwise. Generally, preference shareholders receive a fixed percentage of dividends. They may or may not be cumulative. Common shareholders may or may not receive dividends every year. Common shares dividends depend upon net profit made by the company. When the company do not make profits, common shareholders do not receive dividends. To determine the effect of dividend distribution on the accounting equation .

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Chapter 15, Problem 8P

To determine

Dividends: Dividend is the reward or return that a company gives to its shareholders on their investment. Dividends can be cash or otherwise. Generally, preference shareholders receive a fixed percentage of dividends. They may or may not be cumulative. Common shareholders may or may not receive dividends every year. Common shares dividends depend upon net profit made by the company. When the company do not make profits, common shareholders do not receive dividends.

To determine the effect of dividend distribution on the accounting equation.

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